The Don't Nod Entertainment (EPA:ALDNE) Share Price Has Gained 10% And Shareholders Are Hoping For More

Passive investing in index funds can generate returns that roughly match the overall market. But if you pick the right individual stocks, you could make more than that. For example, the Don't Nod Entertainment S.A. (EPA:ALDNE) share price is up 10% in the last year, clearly besting the market decline of around 4.4% (not including dividends). So that should have shareholders smiling. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

Check out our latest analysis for Don't Nod Entertainment

While Don't Nod Entertainment made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Don't Nod Entertainment grew its revenue by 3.5% last year. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 10%. While not a huge gain tht seems pretty reasonable. It could be worth keeping an eye on this one, especially if growth accelerates.

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

If you are thinking of buying or selling Don't Nod Entertainment stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Don't Nod Entertainment shareholders have gained 10% over the last year. And the share price momentum remains respectable, with a gain of 29% in the last three months. This suggests the company is continuing to win over new investors. 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. Take risks, for example - Don't Nod Entertainment has 3 warning signs we think you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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