The Akerna (NASDAQ:KERN) Share Price Has Gained 14% And Shareholders Are Hoping For More

Akerna Corp. (NASDAQ:KERN) shareholders might be rather concerned because the share price has dropped 32% in the last month. Looking on the brighter side, the stock is actually up over twelve months. In that time, it is up 14%, which isn't bad, but is below the market return of 46%.

Check out our latest analysis for Akerna

Akerna wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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.

Akerna grew its revenue by 12% last year. That's not a very high growth rate considering it doesn't make profits. It's probably fair to say that the modest growth is reflected in the modest share price gain of 14%. A closer look at the bottom line might reveal an opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

If you are thinking of buying or selling Akerna stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Akerna shareholders have gained 14% for the year. The bad news is that's no better than the average market return, which was roughly 46%. However, that falls short of the 60% gain it has made, for shareholders, in the last three months. It's worth taking note when returns accelerate, as it can indicate positive change in the underlying business, and winners often keep winning. 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 example, we've discovered 4 warning signs for Akerna (3 shouldn't be ignored!) that you should be aware of before investing here.

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 US 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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