The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the MongoDB, Inc. (NASDAQ:MDB) share price had more than doubled in just one year - up 205%. On top of that, the share price is up 21% in about a quarter. Note that businesses generally develop over the long term, so it the returns over the last year might not reflect a long term trend.
Check out our latest analysis for MongoDB
Because MongoDB is loss-making, 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.
MongoDB grew its revenue by 55% last year. That's well above most other pre-profit companies. And the share price has responded, gaining 205% as we previously mentioned. It's great to see strong revenue growth, but the question is whether it can be sustained. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This freereport showing analyst forecasts should help you form a view on MongoDB
A Different Perspective
MongoDB boasts a total shareholder return of 205% for the last year. The more recent returns haven't been quite so good, coming in at just 21%. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). Before spending more time on MongoDB it might be wise to click here to see if insiders have been buying or selling shares.
For those who like to find winning investments this freelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.