Spark Networks'(NYSEMKT:LOV) Share Price Is Down 54% Over The Past Three Years.

The truth is that if you invest for long enough, you're going to end up with some losing stocks. But long term Spark Networks SE (NYSEMKT:LOV) shareholders have had a particularly rough ride in the last three year. Sadly for them, the share price is down 54% in that time. Contrary to the longer term story, the last month has been good for stockholders, with a share price gain of 8.3%. But this could be related to good market conditions, with stocks up around 13% during the period.

View our latest analysis for Spark Networks

Because Spark Networks 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years, Spark Networks saw its revenue grow by 31% per year, compound. That is faster than most pre-profit companies. The share price has moved in quite the opposite direction, down 15% over that time, a bad result. This could mean hype has come out of the stock because the losses are concerning investors. But a share price drop of that magnitude could well signal that the market is overly negative on the stock.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

A Different Perspective

The last twelve months weren't great for Spark Networks shares, which cost holders 13%, while the market was up about 24%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, the longer term story isn't pretty, with investment losses running at 15% per year over three years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

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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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