Genius Sports (NYSE:GENI) shareholders have endured a 78% loss from investing in the stock a year ago

It is a pleasure to report that the Genius Sports Limited (NYSE:GENI) is up 62% in the last quarter. But that hardly compensates for the shocking decline over the last twelve months. Specifically, the stock price nose-dived 78% in that time. So it's not that amazing to see a bit of a bounce. Only time will tell if the company can sustain the turnaround.

Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.

Check out our latest analysis for Genius Sports

Given that Genius Sports didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Genius Sports grew its revenue by 57% over the last year. That's a strong result which is better than most other loss making companies. So on the face of it we're really surprised to see the share price down 78% over twelve months. There's clearly something unusual going on here such as an acquisition that hasn't delivered expected profits. What is clear is that the market is not judging the company on its revenue growth right now. Of course, markets do over-react so share price drop may be too harsh.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth

This free interactive report on Genius Sports' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Genius Sports shareholders are down 78% for the year, even worse than the market loss of 24%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. Putting aside the last twelve months, it's good to see the share price has rebounded by 62%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Genius Sports better, we need to consider many other factors. For instance, we've identified 2 warning signs for Genius Sports that you should be aware of.

Of course Genius Sports may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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