CXApp, a penny stock, surged 84% after earnings, remains unprofitable but has growth potential

From Nasdaq: 2024-08-15 13:06:56

Investing in penny stocks can be risky, but quality penny stocks have the potential for high gains. One such stock is CXApp (CXAI), a micro-cap penny stock. Valued at $34.16 million, it surged over 84% after quarterly results, trading at $2.32 per share on Aug. 13.

In Q2 of 2024, CXApp reported revenue of $1.76 million, with a net loss of $5.25 million. The company remains unprofitable but saw growth in bookings and revenue split. CXApp transformed to an AI-native SaaS model, securing its largest expansion deal with a financial customer, doubling revenue from this expansion.

CXApp announced a strategic partnership with Google Cloud, aiming to integrate AI into workplace solutions. Analysts have a “strong buy” rating with a target price of $6, indicating a potential upside of 161%. Despite the partnership, CXApp’s profitability remains a concern, and investors should monitor its revenue growth over multiple quarters.



Read more at Nasdaq: Up 84% After Earnings, Is This Breakout Penny Stock a Buy?