Wix.com (NASDAQ:WIX shareholders incur further losses as stock declines 3.3% this week, taking three-year losses to 66%

The truth is that if you invest for long enough, you're going to end up with some losing stocks. But the last three years have been particularly tough on longer term Wix.com Ltd. (NASDAQ:WIX) shareholders. Unfortunately, they have held through a 66% decline in the share price in that time. Shareholders have had an even rougher run lately, with the share price down 15% in the last 90 days. 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.

After losing 3.3% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Wix.com

Given that Wix.com 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over three years, Wix.com grew revenue at 19% per year. That's a fairly respectable growth rate. That contrasts with the weak share price, which has fallen 18% compounded, over three years. The market must have had really high expectations to be disappointed with this progress. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. If you are thinking of buying or selling Wix.com stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's nice to see that Wix.com shareholders have received a total shareholder return of 22% over the last year. Notably the five-year annualised TSR loss of 5% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Wix.com better, we need to consider many other factors. Even so, be aware that Wix.com is showing 1 warning sign in our investment analysis , you should know about...

But note: Wix.com may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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