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    AleAnna, Inc. (NASDAQ:ANNA) May Have Run Too Fast Too Soon With Recent 25% Price Plummet

    Simply Wall St·01/08/2026 10:32:05
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    To the annoyance of some shareholders, AleAnna, Inc. (NASDAQ:ANNA) shares are down a considerable 25% in the last month, which continues a horrid run for the company. For any long-term shareholders, the last month ends a year to forget by locking in a 65% share price decline.

    Even after such a large drop in price, when almost half of the companies in the United States' Renewable Energy industry have price-to-sales ratios (or "P/S") below 2.6x, you may still consider AleAnna as a stock not worth researching with its 6x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so lofty.

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    Check out our latest analysis for AleAnna

    ps-multiple-vs-industry
    NasdaqCM:ANNA Price to Sales Ratio vs Industry January 8th 2026

    What Does AleAnna's Recent Performance Look Like?

    AleAnna certainly has been doing a great job lately as it's been growing its revenue at a really rapid pace. It seems that many are expecting the strong revenue performance to beat most other companies over the coming period, which has increased investors’ willingness to pay up for the stock. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

    Although there are no analyst estimates available for AleAnna, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

    What Are Revenue Growth Metrics Telling Us About The High P/S?

    The only time you'd be truly comfortable seeing a P/S as steep as AleAnna's is when the company's growth is on track to outshine the industry decidedly.

    Taking a look back first, we see that the company's revenues underwent some rampant growth over the last 12 months. Still, revenue has barely risen at all from three years ago in total, which is not ideal. Therefore, it's fair to say that revenue growth has been inconsistent recently for the company.

    Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 30% shows it's noticeably less attractive.

    With this in mind, we find it worrying that AleAnna's P/S exceeds that of its industry peers. It seems most investors are ignoring the fairly limited recent growth rates and are hoping for a turnaround in the company's business prospects. Only the boldest would assume these prices are sustainable as a continuation of recent revenue trends is likely to weigh heavily on the share price eventually.

    The Final Word

    A significant share price dive has done very little to deflate AleAnna's very lofty P/S. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

    Our examination of AleAnna revealed its poor three-year revenue trends aren't detracting from the P/S as much as we though, given they look worse than current industry expectations. Right now we aren't comfortable with the high P/S as this revenue performance isn't likely to support such positive sentiment for long. Unless there is a significant improvement in the company's medium-term performance, it will be difficult to prevent the P/S ratio from declining to a more reasonable level.

    And what about other risks? Every company has them, and we've spotted 1 warning sign for AleAnna you should know about.

    It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).