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Glimpse Group (NASDAQ:VRAR investor one-year losses grow to 65% as the stock sheds US$8.6m this past week

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Taking the occasional loss is an integral part of investing in the stock market. Anyone who held The Glimpse Group, Inc. (NASDAQ:VRAR) over the past year knows what a loser looks like. During this relatively short period, the stock price fell by 65%. Because Glimpse Group has not been listed for many years, the market is still learning more about the company’s performance. The falls have accelerated recently, with the stock price falling 25% in the past three months. Of course, this stock price move may well have been influenced by the 11% decline in the broader market throughout the period.

Looking back to the past week, investor sentiment for Glimpse Group is not positive, so let’s see if there is a mismatch between the fundamentals and the stock price.

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Glimpse Group has not been profitable for the last twelve months, we are unlikely to see a strong correlation between its share price and earnings per share (EPS). Income is arguably our second best option. Generally speaking, companies without profits should increase their revenue every year, and at a good pace. Indeed, it is difficult to be sure that a business will be sustainable if revenue growth is negligible and it never makes a profit.

Last year, Glimpse Group saw its turnover increase by 112%. That’s way above most other nonprofits. During this time, the stock price fell by 65%. It could mean the hype is gone from the stock because the end result is for investors. We would certainly consider this a positive if the company is trending towards profitability. If you see this happening, maybe consider adding this stock to your watchlist.

You can see how earnings and income have changed over time below (find out the exact values ​​by clicking on the image).

NasdaqCM: VRAR Earnings and Revenue Growth November 4, 2022

We appreciate the fact that insiders have been buying stocks over the past twelve months. Even so, future earnings will be far more important to whether current shareholders are making money. This free a report showing analyst forecasts should help you form an opinion on the Glimpse Group

A different perspective

Glimpse Group shareholders are down 65% for the year, even worse than the market’s 25% loss. It’s no doubt a disappointment, but the stock may well have done better in a stronger market. With the stock down 25% in the last three months, the market doesn’t seem to believe the company has solved all of its problems. Given the relatively short history of this stock, we would remain fairly cautious until we see strong trading performance. I find it very interesting to look at stock price over the long term as a proxy for company performance. But to really get insight, we also need to consider other information. For example, we have identified 2 warning signs for the Glimpse group of which you should be aware.

If you like buying stocks alongside management then you might love this free list of companies. (Hint: insiders bought them).

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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