Aurora Mobile (NASDAQ:JG) investors are sitting on a 76% loss if they had invested three years ago

Every investor on earth sometimes makes bad calls. But you have a problem if you face massive losses more than once in a while. So spare a thought for the long-term shareholders of Aurora Mobile Limited (NASDAQ: JG); the stock price has fallen 76% over the past three years. That would be enough to worry even the strongest minds. And the ride hasn’t been smoother lately in the past year, with the price 58% lower over that time. Shareholders have had an even tougher race lately, with the share price falling 15% in the past 90 days.

Now let’s look at the fundamentals of the business and see if the long-term shareholder return matches the performance of the underlying business.

Given that Aurora Mobile has posted losses over the past twelve months, we think the market is likely more focused on revenue and revenue growth, at least for now. Shareholders of unprofitable companies generally expect strong revenue growth. Indeed, it is difficult to be sure that a business will be sustainable if revenue growth is negligible and it never makes a profit.

Over the past three years, Aurora Mobile has seen its revenue decline by 38% per year. This is certainly a lower result than what most nonprofits report. And as you might expect, the stock price has also been weak, falling at a rate of 21% per year. Never forget that loss-making companies with declining revenues can and do lead to losses for everyday investors. It’s worth remembering that investors call buying a sharply falling stock price “catching a falling knife” because it’s a dangerous pastime.

The graph below illustrates the evolution of income and income over time (reveal the exact values ​​by clicking on the image).

If you are thinking of buying or selling Aurora Mobile stock, you should check out this FREE detailed balance sheet report.

A different perspective

The last twelve months have not been great for Aurora Mobile shares, which have underperformed the market, costing holders 58%. Meanwhile, the broader market slipped around 13%, likely weighing on the stock. Shareholders have lost 21% annually over the past three years, so the share price decline has become more pronounced over the past year; a potential symptom of unresolved challenges. Although Baron Rothschild said “buy when there is blood in the streets, even if the blood is yours”, he also focuses on high quality stocks with strong prospects. It is always interesting to follow the evolution of the share price over the long term. But to better understand Aurora Mobile, we need to consider many other factors. For example, we found 1 warning sign for Aurora Mobile which you should be aware of before investing here.

But note: Aurora Mobile may not be the best stock to buy. So take a look at this free list of interesting companies with past earnings growth (and new growth forecasts).

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

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.