Yahoo Finance Loss-making XPeng (NYSE:XPEV) sheds a further US$279m, taking total shareholder losses to 63% over 1 year
XPeng Inc. (NYSE:XPEV) shareholders should be happy to see the share price up 12% in the last month. But that isn't much consolation to those who have suffered through the declines of the last year. During that time the share price has sank like a stone, descending 63%. So the bounce should be viewed in that context. You could argue that the sell-off was too severe.
With the stock having lost 3.5% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.
Check out our latest analysis for XPeng
Because XPeng made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
XPeng grew its revenue by 28% over the last year. That's definitely a respectable growth rate. Unfortunately it seems investors wanted more, because the share price is down 63% in that time. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling XPeng stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
XPeng shareholders are down 63% for the year, even worse than the market loss of 6.7%. 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 6.0%, 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). While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that XPeng is showing 1 warning sign in our investment analysis , you should know about...
XPeng is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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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