Upland Software (NASDAQ:UPLD shareholders incur further losses as stock declines 9.7% this week, taking one-year losses to 66%

Even the best stock pickers will make plenty of bad investments. Anyone who held Upland Software, Inc. (NASDAQ:UPLD) over the last year knows what a loser feels like. The share price has slid 66% in that time. To make matters worse, the returns over three years have also been really disappointing (the share price is 61% lower than three years ago). Furthermore, it's down 23% in about a quarter. That's not much fun for holders.

If the past week is anything to go by, investor sentiment for Upland Software isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

See our latest analysis for Upland Software

Upland Software wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

In the last twelve months, Upland Software increased its revenue by 3.5%. That's not a very high growth rate considering it doesn't make profits. It's likely this muted growth has contributed to the share price decline of 66% in the last year. We'd want to see evidence that future revenue growth will be stronger before getting too interested. When a stock falls hard like this, it can signal an over-reaction. Our preference is to wait for a fundamental improvements before buying, but now could be a good time for some research.

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

If you are thinking of buying or selling Upland Software stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Investors in Upland Software had a tough year, with a total loss of 66%, against a market gain of about 0.4%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 0.6% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Upland Software you should know about.

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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. 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.