The nature of investing is that you win some, and you lose some. Anyone who held Coursera, Inc. (NYSE:COUR) over the last year knows what a loser feels like. The share price has slid 59% in that time. Because Coursera hasn't been listed for many years, the market is still learning about how the business performs. Furthermore, it's down 24% in about a quarter. That's not much fun for holders.
Since Coursera has shed US$167m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.
Check out our latest analysis for Coursera
Given that Coursera 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. 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.
Coursera grew its revenue by 36% over the last year. That's definitely a respectable growth rate. Meanwhile, the share price tanked 59%, 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.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Coursera is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Coursera stock, you should check out this free report showing analyst consensus estimates for future profits.
Coursera shareholders are down 59% for the year, even worse than the market loss of 15%. 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 24%, 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 2 warning signs for Coursera that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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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Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.
Coursera, Inc. operates an online educational content platform that connects learners, educators, organizations, and institutions.
Flawless balance sheet with concerning outlook.
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