The Marley Spoon (ASX:MMM) Share Price Has Gained 181%, So Why Not Pay It Some Attention?

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Marley Spoon AG (ASX:MMM) share price has soared 181% in the last year. Most would be very happy with that, especially in just one year! And in the last month, the share price has gained 12%. Marley Spoon hasn't been listed for long, so it's still not clear if it is a long term winner.

Check out our latest analysis for Marley Spoon

Marley Spoon 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Marley Spoon grew its revenue by 96% last year. That's stonking growth even when compared to other loss-making stocks. And the share price has responded, gaining 181% as we previously mentioned. It's great to see strong revenue growth, but the question is whether it can be sustained. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

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

earnings-and-revenue-growth

Take a more thorough look at Marley Spoon's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Marley Spoon shareholders have gained 181% over the last year. That's better than the more recent three month gain of 11%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). It's always interesting to track share price performance over the longer term. But to understand Marley Spoon better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Marley Spoon you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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