The art and science of stock market investing requires a tolerance for losing money on some of the shares you buy. But it should be a priority to avoid stomach churning catastrophes, wherever possible. We wouldn't blame Near Intelligence, Inc. (NASDAQ:NIR) shareholders if they were still in shock after the stock dropped like a lead balloon, down 74% in just one year. That'd be a striking reminder about the importance of diversification. Near Intelligence hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. It's down 75% in about a month. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
If the past week is anything to go by, investor sentiment for Near Intelligence isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
View our latest analysis for Near Intelligence
Near Intelligence isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
In the last twelve months, Near Intelligence increased its revenue by 32%. We think that is pretty nice growth. However, it seems like the market wanted more, since the share price is down 74%. It could be that the losses are too much for investors to handle without losing their nerve. It seems that the market has concerns about the future, because that share price action does not seem to reflect the revenue growth at all.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
Near Intelligence shareholders are down 74% for the year, even worse than the market loss of 11%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. Notably, the loss over the last year isn't as bad as the 75% drop in the last three months. So it seems like some holders have been dumping the stock of late - and that's not bullish. 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 risks, for instance. Every company has them, and we've spotted 3 warning signs for Near Intelligence you should know about.