While shareholders of FansUnite Entertainment (CSE:FANS) are in the black over 1 year, those who bought a week ago aren't so fortunate

The FansUnite Entertainment Inc. (CSE:FANS) share price has had a bad week, falling 15%. But that doesn't change the fact that the returns over the last year have been very strong. We're very pleased to report the share price shot up 162% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.

While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

See our latest analysis for FansUnite Entertainment

Because FansUnite Entertainment 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year FansUnite Entertainment saw its revenue grow by 53,229%. That's well above most other pre-profit companies. And the share price has responded, gaining 162% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on FansUnite Entertainment's earnings, revenue and cash flow.

A Different Perspective

FansUnite Entertainment shareholders should be happy with the total gain of 162% over the last twelve months. The more recent returns haven't been as impressive as the longer term returns, coming in at just 7.5%. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). It's always interesting to track share price performance over the longer term. But to understand FansUnite Entertainment better, we need to consider many other factors. Take risks, for example - FansUnite Entertainment has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.

Of course FansUnite Entertainment may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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