Introducing Marley Spoon (ASX:MMM), The Stock That Soared 556% In The Last Year

The last three months have been tough on Marley Spoon AG (ASX:MMM) shareholders, who have seen the share price decline a rather worrying 38%. But that cannot eclipse the spectacular share price rise we've seen over the last twelve months. In that time, shareholders have had the pleasure of a 556% boost to the share price. So we wouldn't blame sellers for taking some profits. While winners often keep winning, it can pay to be cautious after a strong rise.

It really delights us to see such great share price performance for investors.

See our latest analysis for Marley Spoon

Because Marley Spoon made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Marley Spoon grew its revenue by 62% last year. That's well above most other pre-profit companies. But the share price has really rocketed in response gaining 556% as previously mentioned. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. But if the share price does moderate a bit, there might be an opportunity for high growth investors.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Marley Spoon will earn in the future (free profit forecasts).

A Different Perspective

Marley Spoon boasts a total shareholder return of 556% for the last year. We regret to report that the share price is down 38% over ninety days. Shorter term share price moves often don't signify much about the business itself. 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 3 warning signs with Marley Spoon (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.

Marley Spoon is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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