The one-year returns have been solid for Forge Global Holdings (NYSE:FRGE) shareholders despite underlying losses increasing

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the Forge Global Holdings, Inc. (NYSE:FRGE) share price has soared 121% return in just a single year. Also pleasing for shareholders was the 119% gain in the last three months. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. Forge Global Holdings hasn't been listed for long, so it's still not clear if it is a long term winner.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

Check out our latest analysis for Forge Global Holdings

Given that Forge Global Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, Forge Global Holdings' revenue grew by 148%. That's well above most other pre-profit companies. And the share price has responded, gaining 121% as we previously mentioned. It's great to see strong revenue growth, but the question is whether it can be sustained. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Forge Global Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Forge Global Holdings shareholders should be happy with the total gain of 121% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 119% in that time. This suggests the company is continuing to win over new investors. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Forge Global Holdings you should be aware of.

We will like Forge Global Holdings 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.

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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.