If You Had Bought Kahoot! (OB:KAHOT) Shares A Year Ago You'd Have Earned 402% Returns

For many, the main point of investing in the stock market is to achieve spectacular returns. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, Kahoot! AS (OB:KAHOT) has generated a beautiful 402% return in just a single year. On top of that, the share price is up 99% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

View our latest analysis for Kahoot!

Kahoot! isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Kahoot! grew its revenue by 262% last year. That's stonking growth even when compared to other loss-making stocks. But the share price seems headed to the moon, up 402% as previously highlighted. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. But if the share price does moderate a bit, there might be an opportunity for high growth investors.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Kahoot! stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's nice to see that Kahoot! shareholders have gained 402% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 99% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Kahoot! better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Kahoot! .

Kahoot! is not the only stock that insiders are buying. 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 NO 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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