Published on 2 Jan 2023 on Simply Wall St. via Yahoo Finance
Even the best investor on earth makes unsuccessful investments. But serious investors should think long and hard about avoiding extreme losses. So we hope that those who held FaZe Holdings Inc. (NASDAQ:FAZE) during the last year don't lose the lesson, in addition to the 82% hit to the value of their shares. A loss like this is a stark reminder that portfolio diversification is important. Because FaZe Holdings hasn't been listed for many years, the market is still learning about how the business performs. Furthermore, it's down 63% in about a quarter. That's not much fun for holders. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.
It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.
See our latest analysis for FaZe Holdings