Introducing Firstwave Cloud Technology, The Stock That Dropped 14% In The Last Year

It is doubtless a positive to see that the Firstwave Cloud Technology Limited (ASX:FCT) share price has gained some 82% in the last three months. But in truth the last year hasn't been good for the share price. The cold reality is that the stock has dropped 14% in one year, under-performing the market.

View our latest analysis for Firstwave Cloud Technology

Firstwave Cloud Technology 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Firstwave Cloud Technology grew its revenue by 21% over the last year. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 14%. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.

The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. This free interactive report on Firstwave Cloud Technology's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

While Firstwave Cloud Technology shareholders are down 14% for the year, the market itself is up 7.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 82% 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 is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.

Firstwave Cloud Technology is not the only stock insiders are buying. So take a peek at this freelist of growing companies with insider buying.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.