Shareholders have faith in loss-making Byte Metaverse Holdings (HKG:8645) as stock climbs 11% in past week, taking five-year gain to 707%

For many, the main point of investing in the stock market is to achieve spectacular returns. And we've seen some truly amazing gains over the years. To wit, the Byte Metaverse Holdings Limited (HKG:8645) share price has soared 707% over five years. This just goes to show the value creation that some businesses can achieve. Also pleasing for shareholders was the 34% gain in the last three months. Anyone who held for that rewarding ride would probably be keen to talk about it.

Since it's been a strong week for Byte Metaverse Holdings shareholders, let's have a look at trend of the longer term fundamentals.

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Because Byte Metaverse Holdings 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. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

For the last half decade, Byte Metaverse Holdings can boast revenue growth at a rate of 22% per year. That's well above most pre-profit companies. Fortunately, the market has not missed this, and has pushed the share price up by 52% per year in that time. It's never too late to start following a top notch stock like Byte Metaverse Holdings, since some long term winners go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on Byte Metaverse Holdings' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Byte Metaverse Holdings shareholders have received returns of 37% over twelve months, which isn't far from the general market return. We should note here that the five-year TSR is more impressive, at 52% per year. More recently, the share price growth has slowed. But it has to be said the overall picture is one of good long term and short term performance. Arguably that makes Byte Metaverse Holdings a stock worth watching. It's always interesting to track share price performance over the longer term. But to understand Byte Metaverse Holdings better, we need to consider many other factors. For example, we've discovered 2 warning signs for Byte Metaverse Holdings (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

But note: Byte Metaverse Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong 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.