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Long term investing works well, but it doesn't always work for each individual stock. It hits us in the gut when we see fellow investors suffer a loss. Anyone who held Nxt-ID, Inc. (NASDAQ:NXTD) for five years would be nursing their metaphorical wounds since the share price dropped 98% in that time. And it's not just long term holders hurting, because the stock is down 63% in the last year. Shareholders have had an even rougher run lately, with the share price down 34% in the last 90 days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
See our latest analysis for Nxt-ID
Because Nxt-ID is loss-making, 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.