SEATTLE – For investors seeking high-growth opportunities, Impinj, Inc. (NASDAQ:PI) presents a compelling, albeit volatile, case study. The company’s stock has delivered a staggering 287% return over the past five years, a performance that starkly illustrates the immense upside potential of a successful growth stock.
This momentum has been particularly potent recently, with Impinj shareholders enjoying a remarkable 66% surge in the share price over the last quarter alone.
The driving force behind this impressive long-term appreciation is clear: robust top-line growth. While Impinj was not profitable over the last twelve months, the market has instead focused on its exceptional revenue performance. The company has grown its revenue at a brisk 21% per year over the past five years. This sustained growth has translated into an average annual share price increase of 31% over the same period, suggesting investors have been willing to reward the company’s expansion and market penetration ahead of bottom-line profits.
However, the journey for Impinj investors has required a strong stomach. In a sharp contrast to its long-term trend, the stock has faced headwinds over the last twelve months, falling 28% while the broader market gained approximately 15%. This divergence highlights the inherent volatility in high-growth stocks. For long-term believers in the company’s fundamentals, this recent sell-off could be viewed as a potential buying opportunity, assuming the core growth story remains intact.
While the revenue figures are encouraging, a complete investment thesis requires a look at the potential risks. Prospective investors should be aware that an analysis of the company has identified 1 warning sign for Impinj. Acknowledging such risks is a critical step in any due diligence process.
Ultimately, Impinj presents the classic profile of a high-growth tech investment: stellar long-term returns powered by strong revenue expansion, but accompanied by significant short-term volatility and specific risks that warrant careful consideration.
