LiveRamp Holdings (NYSE:RAMP) adds US$85m to market cap in the past 7 days, though investors from three years ago are still down 36%

Many investors define successful investing as beating the market average over the long term. But if you try your hand at stock picking, you risk returning less than the market. Unfortunately, that's been the case for longer term LiveRamp Holdings, Inc. (NYSE:RAMP) shareholders, since the share price is down 36% in the last three years, falling well short of the market return of around 19%.

Although the past week has been more reassuring for shareholders, they're still in the red over the last three years, so let's see if the underlying business has been responsible for the decline.

View our latest analysis for LiveRamp Holdings

While LiveRamp Holdings made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over three years, LiveRamp Holdings grew revenue at 13% per year. That's a pretty good rate of top-line growth. Shareholders have endured a share price decline of 11% per year. So the market has definitely lost some love for the stock. With revenue growing at a solid clip, now might be the time to focus on the possibility that it will have a brighter future.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We know that LiveRamp Holdings has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think LiveRamp Holdings will earn in the future (free profit forecasts).

A Different Perspective

LiveRamp Holdings shareholders are up 7.9% for the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 6% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand LiveRamp Holdings better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for LiveRamp Holdings you should be aware of.

Of course LiveRamp Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

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

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.

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