While it may not be enough for some shareholders, we think it is good to see the Gorilla Technology Group Inc. (NASDAQ:GRRR) share price up 16% in a single quarter. But that hardly compensates for the shocking decline over the last twelve months. Specifically, the stock price nose-dived 83% in that time. Arguably, the recent bounce is to be expected after such a bad drop. The important thing is whether the company can turn it around, longer term. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
View our latest analysis for Gorilla Technology Group
Gorilla Technology Group 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. Shareholders of unprofitable companies usually expect strong 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.
Gorilla Technology Group's revenue didn't grow at all in the last year. In fact, it fell 47%. That looks pretty grim, at a glance. The share price fall of 83% in a year tells the story. That's a stern reminder that profitless companies need to grow the top line, at the very least. Of course, extreme share price falls can be an opportunity for those who are willing to really dig deeper to understand a high risk company like this.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling Gorilla Technology Group stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Given that the market gained 12% in the last year, Gorilla Technology Group shareholders might be miffed that they lost 83%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. It's great to see a nice little 16% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand Gorilla Technology Group better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Gorilla Technology Group (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.