It's easy to feel disappointed if you buy a stock that goes down. But in the short term the market is a voting machine, and the share price movements may not reflect the underlying business performance. Over the year the Vasta Platform Limited (NASDAQ:VSTA) share price fell 14%. However, that's better than the market's overall decline of 23%. Because Vasta Platform hasn't been listed for many years, the market is still learning about how the business performs. In the last ninety days we've seen the share price slide 30%.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for Vasta Platform

Given that Vasta Platform didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Vasta Platform saw its revenue grow by 30%. We think that is pretty nice growth. Considering the limp overall market, the share price loss of 14% over the year isn't too bad. It's likely that the revenue growth encouraged some shareholders to hold firm. So we definitely think this is a good candidate for further research; share price down, revenue up.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Given that the broader market dropped 23% over the year, the fact that Vasta Platform shareholders were down 14% isn't so bad. However, the problem arose in the last three months, which saw the share price drop 30%. It's always a worry to see a share price decline like that, but at the same time, it is an unavoidable part of investing. However, this could create an opportunity if the fundamentals remain strong. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

But note: Vasta Platform may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here