The Wayi International Digital Entertainment (GTSM:3086) Share Price Has Gained 246%, So Why Not Pay It Some Attention?

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the Wayi International Digital Entertainment Co., Ltd. (GTSM:3086) share price has soared 246% in the last year. Most would be very happy with that, especially in just one year! Better yet, the share price has gained 293% in the last quarter. Having said that, the longer term returns aren't so impressive, with stock gaining just 5.3% in three years.

See our latest analysis for Wayi International Digital Entertainment

Given that Wayi International Digital Entertainment 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Wayi International Digital Entertainment saw its revenue shrink by 25%. We're a little surprised to see the share price pop 246% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

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 Wayi International Digital Entertainment's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Wayi International Digital Entertainment has rewarded shareholders with a total shareholder return of 246% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 4% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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 - Wayi International Digital Entertainment has 4 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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