If you had bought the Infinera stock (NASDAQ: INFN) three years ago, you would lose today with a loss of 76% – Simply Wall St News

As every investor knows, not all movements are up to par. But you want to avoid very big losses like the plague. So, let's consider for a moment the misfortune of Infinera Corporation (NASDAQ: INFN) Investors who have held equities for three years have seen a dramatic 76% drop. This is enough to sow worry among the strongest minds. The most recent news is uncomfortable, with the share price falling by 69% in one year. The falls have accelerated recently as the stock price has dropped 40% in the last three months. We note that the company has published results fairly recently; and the market is not very happy. You can check the latest figures in our company report.

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See our latest badysis for Infinera

Since Infinera has a deficit, we think the market is probably more focused on revenue and revenue growth, at least for now. Shareholders in unprofitable companies generally expect strong growth in their revenues. This is because rapid income growth can easily be extrapolated to projected profits, often of considerable size.

Over the last three years, Infinera has seen its business turnover decline by 1.5% per year. This is not a good result. The falling stock price of 38% (per year over three years) is a harsh reminder that losing companies should increase their income. This activity must clearly generate revenue to perform as desired by investors. Do not let the stock price drop ruin your calm. You make better decisions when you are calm.

You can see the evolution of income and income over time in the image below (click on the graph to view the cash flow).

It is good to see that there have been significant purchases of insiders in the last three months. It's positive. On the other hand, we believe that income and profit trends are much more significant measures of activity. If you are thinking of buying or selling Infinera stock, you should take a look at this free report showing badysts' earnings forecasts.

A different perspective

Investors in Infinera had a difficult year, with a total loss of 69%, compared with a market gain of around 3.8%. However, keep in mind that even the best stocks will sometimes be underperforming in the market over a twelve month period. Unfortunately, last year's performance was poor, with shareholders facing a total loss of 19% per year over five years. In general, long-term low equity prices may be a bad sign, although contrarian investors may want to search the stock in the hope of a turnaround. Investors who like to earn money usually check insider purchases, such as the price paid and the total amount purchased. You can find out more about Infinera's insider purchases by clicking on this link.

There are many other companies that have insiders who buy stocks. You probably do do not want to miss free list of growing companies that insiders buy.

Please note that the market returns quoted in this article reflect the weighted average returns of the equity markets currently traded on the US exchanges.

Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.

If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.