Aurora Innovation (NASDAQ: AUR ) investor’s year-to-date losses soar to 88% as the stock hit $512 million last week. | So Good News


As every investor knows, you don’t hit a homer every time you swing. But if possible, priority should be given to avoiding upset stomach. So we hope that those who caught it Aurora Innovation, Inc. (NASDAQ: AUR ) don’t lose a lesson over the past year, and their stock is up 88%. This would be a striking reminder of the importance of diversification. We are in no rush to make a decision on Aurora Innovation because we don’t have a long-term track record. The share price has fallen 41% over the past three months, and the decline has accelerated recently. This may be related to the latest financial results – you can access the most recent data by reading our company report. We really feel for the shareholders in this scenario. It’s a good reminder of the importance of diversification and to remember that there’s more to life than money.

Given that last week was a tough one for shareholders, let’s dig into the basics and see what we can learn.

Check out our latest analysis for Aurora Innovation

Aurora Innovation hasn’t turned a profit in the last twelve months, so we’re unlikely to see a strong correlation between its share price and earnings per share (EPS). Income is our next best option. When a company isn’t making a profit, we usually expect good revenue growth. This is because it is difficult to be sure that a company will be sustainable if the revenue growth is small and it never turns a profit.

Over the past twelve months, Aurora Innovation has grown its revenue by 66%. This is a better result than other damage companies. Thus, an 88% drop in share price makes market participants think that the company has been disappointed. Something strange is bound to affect the share price; we are convinced that the company will somehow destroy the value. One thing is clear, the market is not valuing the company based on its earnings growth right now. Of course, investors tend to overreact during times of stress, so selling can be unreasonably heavy.

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

income and revenue growth

income and revenue growth

We are pleased to report that the CEO’s compensation is more modest than most CEOs at companies of similar capitalization. CEO pay should always be monitored, but the more important question is whether the company’s earnings will grow over the years. This Free The report, which presents analyst forecasts, should help shape the outlook for Aurora Innovation

Another point of view

Aurora Innovation shares are down 88% for the year, worse than the market’s 19% loss. It’s certainly disappointing, but the stock may have done better in a stronger market. With shares down 41% over the past three months, the market doesn’t seem to believe the company has solved all of its problems. Basically, most investors should be wary of buying underperforming stocks unless the business itself is clearly improving. It is worth considering the various effects that market conditions can have on a stock price, but there are other factors that are even more important. For example, we found 3 warning signs for Aurora Innovation you should know.

If you want to buy stocks along with management, you might just like it Free list of companies. (Hint: insiders bought them).

Please note that the market returns presented in this article represent the average market returns for stocks currently traded 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 using only unbiased methodology and our articles are not intended to provide financial advice. This is not an offer to buy or sell shares and does not take into account your objectives or financial situation. We aim to provide you with long-term focused analysis based on fundamental data. Please note that our analysis may not be affected by price-sensitive company recent announcements or quality material. Simply Wall St has no position in these stocks.

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