It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. For instance the Fobi AI Inc. (CVE:FOBI) share price is 219% higher than it was three years ago. Most would be happy with that. And in the last month, the share price has gained 72%.
Since it's been a strong week for Fobi AI shareholders, let's have a look at trend of the longer term fundamentals.
View our latest analysis for Fobi AI
Fobi AI isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect 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.
Fobi AI's revenue trended up 122% each year over three years. That's well above most pre-profit companies. Along the way, the share price gained 47% per year, a solid pop by our standards. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
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 Fobi AI's financial health with this free report on its balance sheet.
A Different Perspective
The last twelve months weren't great for Fobi AI shares, which performed worse than the market, costing holders 58%. Meanwhile, the broader market slid about 1.1%, likely weighing on the stock. Investors are up over three years, booking 47% per year, much better than the more recent returns. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. 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. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Fobi AI (of which 1 is a bit concerning!) you should know about.
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 CA exchanges.