Further Weakness as UP Fintech Holding (NASDAQ:TIGR) Falls 16% This Week, Snaps One-Year Loss to 40%

Investors can approximate average market returns by purchasing an index fund. When you buy individual stocks, you can achieve higher profits, but you also face the risk of underperformance. That downside risk was realized by UP Fintech Holding Limited (NASDAQ:TIGR) shareholders over the past year, when the share price fell 40%. That’s disappointing when you consider that the market returned 6.9%. At least the damage isn’t too bad if you look at the last three years, as the stock is down 24% in that time. That’s down 40% in about a quarter. This may be related to the latest financial results – you can get the latest data by reading our company report.

Since the past week has been tough for shareholders, let’s examine the fundamentals and see what we can learn.

Check out our latest analysis for UP Fintech Holding

UP Fintech Holding is not currently profitable, so most analysts will look to revenue growth to get an idea of ​​how fast the underlying business is growing. When a company is not making money, we generally expect good earnings growth. As you can imagine, rapid revenue growth, when sustained, often leads to rapid profit growth.

In just one year, UP Fintech Holding saw its revenue drop by 16%. It looks pretty grim, at a glance. The share price has fallen recently, falling 40% in one year. That seems pretty reasonable given the lack of both profit and revenue growth. It is hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

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The image below shows how revenue and earnings have followed over time (if you click on the image you can see more details).

NasdaqGS:TIGR earnings and revenue growth as of May 19, 2023

You can see how the balance has strengthened (or weakened) over time in this free interactive graphics.

Another perspective

Over the past year, UP Fintech Holding shareholders took a 40% loss. In contrast, the market rose around 6.9%. Of course, the long term means more than the short term, and even great stocks will sometimes have a bad year. Shareholders have lost 8% per year over the past three years, so the share price decline has been steeper over the past year; a potential symptom of yet unresolved challenges. We would be cautious about buying into a company with unresolved issues, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. You may want to consider this data-rich visualization of earnings, income and cash flow.

We will like UP Fintech Holding better if we see some big insider buying. While we wait, check this out free list of growing companies with significant recent insider buys.

Please note that the market returns provided in this article reflect the market weighted average return for stocks currently traded on US exchanges.

Valuation is complex, but we help make it simple.

Find out if UP Fintech Holding is potentially overvalued or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

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This article by Simply Wall St is general. We provide commentary based on historical data and analyst forecasts only using an objective methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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