Would Shareholders Who Purchased Synchronoss Technologies' (NASDAQ:SNCR) Stock Five Years Be Happy With The Share price Today?

We're definitely into long term investing, but some companies are simply bad investments over any time frame. We don't wish catastrophic capital loss on anyone. Anyone who held Synchronoss Technologies, Inc. (NASDAQ:SNCR) for five years would be nursing their metaphorical wounds since the share price dropped 88% in that time. Furthermore, it's down 18% in about a quarter. That's not much fun for holders. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.

While a drop like that is definitely a body blow, money isn't as important as health and happiness.

Check out our latest analysis for Synchronoss Technologies

Given that Synchronoss Technologies didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over half a decade Synchronoss Technologies reduced its trailing twelve month revenue by 4.4% for each year. While far from catastrophic that is not good. If a business loses money, you want it to grow, so no surprises that the share price has dropped 13% each year in that time. We're generally averse to companies with declining revenues, but we're not alone in that. Fear of becoming a 'bagholder' may be keeping people away from this stock.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at Synchronoss Technologies' financial health with this free report on its balance sheet.

A Different Perspective

Synchronoss Technologies shareholders gained a total return of 32% during the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 13% endured over half a decade. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand Synchronoss Technologies better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Synchronoss Technologies (of which 2 are a bit concerning!) you should know about.

Of course Synchronoss Technologies may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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