Dingdong (Cayman) (NYSE:DDL investor one-year losses grow to 24% as the stock sheds US$56m this past week

It is a pleasure to report that the Dingdong (Cayman) Limited (NYSE:DDL) is up 40% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact, the price has declined 24% in a year, falling short of the returns you could get by investing in an index fund.

With the stock having lost 5.0% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

Check out our latest analysis for Dingdong (Cayman)

Dingdong (Cayman) isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Dingdong (Cayman) grew its revenue by 32% over the last year. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 24%. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We doubt Dingdong (Cayman) shareholders are happy with the loss of 24% over twelve months. That falls short of the market, which lost 8.4%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's great to see a nice little 40% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Dingdong (Cayman) better, we need to consider many other factors. For example, we've discovered 1 warning sign for Dingdong (Cayman) that you should be aware of before investing here.

We will like Dingdong (Cayman) better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.