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The simplest way to benefit from a rising market is to buy an index fund. But if you buy individual stocks, you can do both better or worse than that. Unfortunately the Ebang International Holdings Inc. (NASDAQ:EBON) share price slid 38% over twelve months. That's disappointing when you consider the market returned 48%. Because Ebang International Holdings hasn't been listed for many years, the market is still learning about how the business performs. The share price has dropped 60% in three months.
Because Ebang International Holdings 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Ebang International Holdings' revenue didn't grow at all in the last year. In fact, it fell 83%. That looks like a train-wreck result to investors far and wide. Meanwhile, the share price dropped by 38%. We would want to see improvements in the core business, and diminishing losses, before getting too excited about this one.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
While Ebang International Holdings shareholders are down 38% for the year, the market itself is up 48%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's worth noting that the last three months did the real damage, with a 60% decline. So it seems like some holders have been dumping the stock of late - and that's not bullish. It's always interesting to track share price performance over the longer term. But to understand Ebang International Holdings better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Ebang International Holdings you should be aware of, and 1 of them can't be ignored.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. 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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