Shareholders in Blade Air Mobility (NASDAQ:BLDE) have lost 61%, as stock drops 11% this past week

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But long term Blade Air Mobility, Inc. (NASDAQ:BLDE) shareholders have had a particularly rough ride in the last three year. Regrettably, they have had to cope with a 61% drop in the share price over that period. And the ride hasn't got any smoother in recent times over the last year, with the price 50% lower in that time. Even worse, it's down 25% in about a month, which isn't fun at all. Importantly, this could be a market reaction to the recently released financial results. You can check out the latest numbers in our company report.

Since Blade Air Mobility has shed US$34m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

Check out our latest analysis for Blade Air Mobility

Blade Air Mobility isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Blade Air Mobility shareholders are down 50% for the year, falling short of the market return. Meanwhile, the broader market slid about 12%, likely weighing on the stock. Shareholders have lost 17% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. It's always interesting to track share price performance over the longer term. But to understand Blade Air Mobility better, we need to consider many other factors. Take risks, for example - Blade Air Mobility has 3 warning signs we think you should be aware of.

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 American exchanges.

What are the risks and opportunities for Blade Air Mobility?

NasdaqCM:BLDE

Blade Air Mobility

Blade Air Mobility, Inc. provides air transportation alternatives to the congested ground routes in the United States.Show more

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Rewards

• Trading at 23.8% below our estimate of its fair value

• Revenue is forecast to grow 21.31% per year

• Earnings have grown 23.8% per year over the past 5 years

Risks

• Significant insider selling over the past 3 months

• Volatile share price over the past 3 months

• Currently unprofitable and not forecast to become profitable over the next 3 years

View all Risks and Rewards

Share Price

Market Cap

1Y Return

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Further research on
Blade Air Mobility

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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.