Shareholders Are Thrilled That The Oblong (NASDAQ:OBLG) Share Price Increased 160%

Some Oblong Inc. (NASDAQ:OBLG) shareholders are probably rather concerned to see the share price fall 39% over the last three months. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Indeed, the share price is up an impressive 160% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.

View our latest analysis for Oblong

Because Oblong 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 expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Oblong saw its revenue grow by 48%. That's well above most other pre-profit companies. And the share price has responded, gaining 160% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Oblong shareholders should be happy with the total gain of 160% over the last twelve months. We regret to report that the share price is down 39% over ninety days. Shorter term share price moves often don't signify much about the business itself. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Oblong (of which 1 makes us a bit uncomfortable!) you should know about.

We will like Oblong better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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