Even the best stock pickers will make plenty of bad investments. And there's no doubt that Vacasa, Inc. (NASDAQ:VCSA) stock has had a really bad year. In that relatively short period, the share price has plunged 53%. We wouldn't rush to judgement on Vacasa because we don't have a long term history to look at. Unfortunately the share price momentum is still quite negative, with prices down 36% in thirty days. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
With the stock having lost 27% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.
Check out our latest analysis for Vacasa
Because Vacasa made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good 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.
In the last twelve months, Vacasa increased its revenue by 98%. That's a strong result which is better than most other loss making companies. Meanwhile, the share price slid 53%. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
Vacasa shareholders are down 53% for the year, even worse than the market loss of 9.0%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 30%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand Vacasa better, we need to consider many other factors. For example, we've discovered 2 warning signs for Vacasa that you should be aware of before investing here.
But note: Vacasa 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.
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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.