Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that Sharecare, Inc. (NASDAQ:SHCR) stock has had a really bad year. To wit the share price is down 66% in that time. Because Sharecare hasn't been listed for many years, the market is still learning about how the business performs. And the share price decline continued over the last week, dropping some 18%.

After losing 18% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

Check out our latest analysis for Sharecare

Sharecare 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Sharecare grew its revenue by 14% over the last year. We think that is pretty nice growth. Meanwhile, the share price tanked 66%, suggesting the market had much higher expectations. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. For us it's important to consider when you think a company will become profitable, if you're basing your valuation on revenue.

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

This free interactive report on Sharecare's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We doubt Sharecare shareholders are happy with the loss of 66% over twelve months. That falls short of the market, which lost 22%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 10% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for Sharecare that you should be aware of.

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 US exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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