Introducing Next Games Oyj (HEL:NXTGMS), The Stock That Zoomed 151% In The Last Year

Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Next Games Oyj (HEL:NXTGMS) share price has soared 151% return in just a single year. On top of that, the share price is up 47% in about a quarter. Zooming out, the stock is actually down 77% in the last three years.

View our latest analysis for Next Games Oyj

Given that Next Games Oyj didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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 Next Games Oyj saw its revenue shrink by 32%. We're a little surprised to see the share price pop 151% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

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

This free interactive report on Next Games Oyj's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Next Games Oyj shareholders have gained 151% (in total) over the last year. This recent result is much better than the 21% drop suffered by shareholders each year (on average) over the last three. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for Next Games Oyj that you should be aware of.

But note: Next Games Oyj may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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