Oblong (NASDAQ:OBLG) hikes 13% this week, taking one-year gains to 31%

While Oblong Inc. (NASDAQ:OBLG) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 25% in the last quarter. But at least the stock is up over the last year. In that time, it is up 31%, which isn't bad, but is below the market return of 36%.

The past week has proven to be lucrative for Oblong investors, so let's see if fundamentals drove the company's one-year performance.

See our latest analysis for Oblong

Oblong isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Oblong actually shrunk its revenue over the last year, with a reduction of 30%. The lacklustre gain of 31% over twelve months, is not a bad result given the falling revenue. Generally we're pretty unenthusiastic about loss making stocks that are not growing revenue.

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

This free interactive report on Oblong's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Oblong shareholders have gained 31% for the year. Unfortunately this falls short of the market return of around 36%. Unfortunately the share price is down 25% over the last quarter. It's possible that this is just a short term share price setback. If the business executes and delivers key metric growth, it could definitely be worth putting on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Oblong better, we need to consider many other factors. For example, we've discovered 3 warning signs for Oblong (1 is a bit concerning!) that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

If you’re looking to trade Oblong, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.