While shareholders of AGBA Group Holding (NASDAQ:AGBA) are in the black over 1 year, those who bought a week ago aren't so fortunate

It's been a soft week for AGBA Group Holding Limited (NASDAQ:AGBA) shares, which are down 21%. But that isn't a problem when you consider how the share price has soared over the last year. Few could complain about the impressive 351% rise, throughout the period. So it is not that surprising to see the stock retrace a little. While winners often keep winning, it can pay to be cautious after a strong rise.

In light of the stock dropping 21% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive one-year return.

Check out our latest analysis for AGBA Group Holding

Because AGBA Group Holding made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

AGBA Group Holding actually shrunk its revenue over the last year, with a reduction of 28%. This is in stark contrast to the splendorous stock price, which has rocketed 351% since this time a year ago. It's pretty clear the market isn't basing its valuation on fundamental metrics like revenue. While this gain looks like speculative buying to us, sometimes speculation pays off.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at AGBA Group Holding's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that AGBA Group Holding shareholders have received a total shareholder return of 351% over one year. There's no doubt those recent returns are much better than the TSR loss of 12% 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. 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 instance, we've identified 5 warning signs for AGBA Group Holding (4 make us uncomfortable) that you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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