Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that Vasta Platform Limited (NASDAQ:VSTA) stock has had a really bad year. To wit the share price is down 61% in that time. Because Vasta Platform hasn't been listed for many years, the market is still learning about how the business performs. Furthermore, it's down 22% in about a quarter. That's not much fun for holders.

Check out our latest analysis for Vasta Platform

Vasta Platform wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Vasta Platform's revenue didn't grow at all in the last year. In fact, it fell 14%. That looks pretty grim, at a glance. In the absence of profits, it's not unreasonable that the share price fell 61%. Fingers crossed this is the low ebb for the stock. 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.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on Vasta Platform's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

While Vasta Platform shareholders are down 61% for the year, the market itself is up 37%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. The share price decline has continued throughout the most recent three months, down 22%, 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. It's always interesting to track share price performance over the longer term. But to understand Vasta Platform better, we need to consider many other factors. Take risks, for example - Vasta Platform has 1 warning sign we think you should be aware of.

We will like Vasta Platform better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.