Corsair Gaming (NASDAQ:CRSR shareholders incur further losses as stock declines 4.9% this week, taking one-year losses to 57%

The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of Corsair Gaming, Inc. (NASDAQ:CRSR) have suffered share price declines over the last year. In that relatively short period, the share price has plunged 57%. Corsair Gaming hasn’t been listed for long, so although we’re wary of recent listings that perform poorly, it may still prove itself with time. Even worse, it’s down 23% in about a month, which isn’t fun at all. However, we note the price may have been impacted by the broader market, which is down 9.6% in the same time period.

Since Corsair Gaming has shed US$56m from its value in the past 7 days, let’s see if the longer term decline has been driven by the business’ economics.

However if you’d rather see where the opportunities and risks are within CRSR’s industry, you can check out our analysis on the US Tech industry.

Because Corsair Gaming 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In just one year Corsair Gaming saw its revenue fall by 22%. That looks pretty grim, at a glance. The share price drop of 57% is understandable given the company doesn’t have profits to boast of. Having said that, if growth is coming in the future, the stock may have better days ahead. We don’t generally like to own companies with falling revenues and no profits, so we’re pretty cautious of this one, at the moment.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

We doubt Corsair Gaming shareholders are happy with the loss of 57% over twelve months. That falls short of the market, which lost 22%. There’s no doubt that’s a disappointment, but the stock may well have fared better in a stronger market. With the stock down 14% over the last three months, the market doesn’t seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we’d remain pretty wary until we see some strong business performance. It’s always interesting to track share price performance over the longer term. But to understand Corsair Gaming better, we need to consider many other factors. Even so, be aware that Corsair Gaming is showing 1 warning sign in our investment analysis , you should know about…

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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.