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This month, we saw the Cue Biopharma, Inc. (NASDAQ:CUE) up an impressive 135%. But that is meagre solace in the face of the shocking decline over three years. The share price has sunk like a leaky ship, down 89% in that time. So it's about time shareholders saw some gains. Of course the real question is whether the business can sustain a turnaround. 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.
The recent uptick of 83% could be a positive sign of things to come, so let's take a look at historical fundamentals.
See our latest analysis for Cue Biopharma
Cue Biopharma wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally hope to see good revenue growth. 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.
In the last three years Cue Biopharma saw its revenue shrink by 26% per year. That's definitely a weaker result than most pre-profit companies report. And as you might expect the share price has been weak too, dropping at a rate of 24% per year. Never forget that loss making companies with falling revenue can and do cause losses for everyday investors. It's worth remembering that investors call buying a steeply falling share price 'catching a falling knife' because it is a dangerous pass time.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Take a more thorough look at Cue Biopharma's financial health with this free report on its balance sheet.
A Different Perspective
While the broader market gained around 32% in the last year, Cue Biopharma shareholders lost 32%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 13% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Cue Biopharma better, we need to consider many other factors. Take risks, for example - Cue Biopharma has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.