March 29, 2024

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Investors Who Bought Stealth BioTherapeutics (NASDAQ:MITO) Shares A Year Ago Are Now Down 91%

The art and science of stock market investing requires a tolerance for losing money on some of the shares you buy. But it would be foolish to simply accept every extremely large loss as an inevitable part of the game. So we hope that those who held Stealth BioTherapeutics Corp (NASDAQ:MITO) during the last year don’t lose the lesson, in addition to the 91% hit to the value of their shares. That’d be enough to make even the strongest stomachs churn. Stealth BioTherapeutics may have better days ahead, of course; we’ve only looked at a one year period. The falls have accelerated recently, with the share price down 58% in the last three months. This could be related to the recent financial results – you can catch up on the most recent data by reading our company report.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don’t have to lose the lesson.

Check out our latest analysis for Stealth BioTherapeutics

Given that Stealth BioTherapeutics 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

NasdaqGM:MITO Income Statement April 7th 2020

If you are thinking of buying or selling Stealth BioTherapeutics stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We doubt Stealth BioTherapeutics shareholders are happy with the loss of 91% over twelve months. That falls short of the market, which lost 11%. That’s disappointing, but it’s worth keeping in mind that the market-wide selling wouldn’t have helped. The share price decline has continued throughout the most recent three months, down 58%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. 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. Consider for instance, the ever-present spectre of investment risk. We’ve identified 6 warning signs with Stealth BioTherapeutics (at least 3 which don’t sit too well with us) , and understanding them should be part of your investment process.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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