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

By
Simply Wall St
Published
September 03, 2021
NasdaqCM:OBLG
Source: Shutterstock

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).

earnings-and-revenue-growth
NasdaqCM:OBLG Earnings and Revenue Growth September 4th 2021

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.

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