Amidst increasing losses, Investors bid up Aurora Innovation (NASDAQ:AUR) 12% this past week

Aurora Innovation, Inc. (NASDAQ:AUR) shareholders should be happy to see the share price up 14% in the last month. But that isn't much consolation to those who have suffered through the declines of the last year. Like an arid lake in a warming world, shareholder value has evaporated, with the share price down 55% in that time. Some might say the recent bounce is to be expected after such a bad drop. Arguably, the fall was overdone.

While the stock has risen 12% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

View our latest analysis for Aurora Innovation

Aurora Innovation 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. 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 Aurora Innovation saw its revenue fall by 79%. That looks like a train-wreck result to investors far and wide. Arguably, the market has responded appropriately to this performance by sending the share price down 55% in the same time period. Buying shares in companies that lose money, shrink revenue, and see share price declines is unpopular with investors, but popular with speculators (apparently). So we'll be looking for strong improvements on the numbers before getting excited.

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

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

A Different Perspective

While Aurora Innovation shareholders are down 55% for the year, the market itself is up 6.3%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 5.1% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Aurora Innovation , and understanding them should be part of your investment process.

We will like Aurora Innovation 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 American 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.

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