Buddy Technologies'(ASX:BUD) Share Price Is Down 81% Over The Past Three Years.

Buddy Technologies Limited (ASX:BUD) shareholders will doubtless be very grateful to see the share price up 231% in the last quarter. But only the myopic could ignore the astounding decline over three years. In that time the share price has melted like a snowball in the desert, down 81%. So it's about time shareholders saw some gains. The thing to think about is whether the business has really turned around.

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

View our latest analysis for Buddy Technologies

Because Buddy Technologies made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

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

earnings-and-revenue-growth

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

A Different Perspective

It's nice to see that Buddy Technologies shareholders have gained 19% (in total) over the last year. That certainly beats the loss of about 22% per year over three years. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. 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. For instance, we've identified 4 warning signs for Buddy Technologies (1 shouldn't be ignored) that you should be aware of.

We will like Buddy Technologies better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

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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