Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that Full Truck Alliance Co. Ltd. (NYSE:YMM) stock has had a really bad year. In that relatively short period, the share price has plunged 60%. Full Truck Alliance may have better days ahead, of course; we've only looked at a one year period. Shareholders have had an even rougher run lately, with the share price down 27% in the last 90 days.

After losing 7.8% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Full Truck Alliance

Given that Full Truck Alliance 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last twelve months, Full Truck Alliance increased its revenue by 59%. That's well above most other pre-profit companies. Meanwhile, the share price slid 60%. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We doubt Full Truck Alliance shareholders are happy with the loss of 60% over twelve months. That falls short of the market, which lost 19%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. The share price decline has continued throughout the most recent three months, down 27%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Full Truck Alliance better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Full Truck Alliance you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.