Absci (NASDAQ.ABSI) shareholders suffered a 76% loss in their stock investments a year back

Every investor will make mistakes from time to time. It is not surprising. It is important to avoid stomach-churning disasters wherever possible. We hope those who have held will continue to hold. Absci Corporation (NASDAQ:ABSI() in the past year, don’t forget the lesson. This would make even the most sane stomachs churn. Absci might have better days ahead. We only reviewed a 1-year period. Recently, the shares have fallen 33% in the past three months.

It’s worth looking at whether the company has been moving in the same direction as these poor shareholder returns or if there are some differences between them. Let’s do this.

See our latest analysis for Absci

Absci’s loss over the past twelve months suggests that the market is more focused on revenue and growth. Shareholders in unprofitable businesses expect strong growth in revenue. It’s difficult to believe a company can be sustained if its revenue growth is low and it doesn’t make a profit.

Absci’s revenue hasn’t grown at all over the last year. It actually fell 6.9%. This is a very grim picture. This is evident in the 76% share price drop over a single year. Investors shouldn’t lose sight of the fact that revenue should increase for loss-making businesses. Investors who take the time and dig into the business will find opportunities. However, markets can be overreactive.

Below is an image that shows how earnings and revenues have changed over time. Click on the image to see more detail.

Take a closer look at Absci’s financial situation with this Free report on its balance sheet.

A Different Perspective

Absci shareholders will not be happy with the 76% loss over twelve months. The market lost 24%, but that’s still a small loss. While it’s clear that the stock is disappointed, it may have performed better in a stronger market. The stock is down 33% in the last three months. This suggests that the market doesn’t believe the company has solved all its problems. This stock has a relatively short history so we would remain cautious until we see solid business performance. It is worth taking into consideration the impact market conditions may have on the share price. However, there are more important factors. It is important to be aware of the following. 2 warning signs we’ve spotted with Absci .

Absci will be more appealing if there are big insider purchases. Check out this while you wait Free list of growing companies with considerable, recent, insider buying.

Please note that the market returns in this article are the market weighted average returns for stocks currently trading on US exchanges.

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This article by Simply Wall St has a general nature. Our commentary is based on historical data, analyst forecasts and other unbiased information. We do not intend to provide financial advice. This analysis does not represent a recommendation to purchase or sell any stock and it does not consider your objectives or financial situation. Our goal is to provide you with long-term, focused analysis based on fundamental data. Please note that our analysis might not include the most recent announcements from price-sensitive companies or qualitative material. Simply Wall St does not hold any position in the stocks mentioned.

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