One of the stocks to have made a strong upward move in recent days is that of NextPlay Technologies (NASDAQ:NXTP) and the move continued on Friday as well considering the fact that it ended the day with gains of as much as 15%.
Trading Data
On Friday, NXTP stock surged 15.21% to $0.7804 with more than 24.14 million shares, compared to its average volume of 2.65 million shares. The stock has moved within a range of $0.7200 – 0.8689 after opening trade at $0.8670.
Earnings Recap
In light of the rally, it may be a good time for investors to look into NextPlay a bit more closely and then figure out the reasons behind the rally. The latest rally in the stock had been triggered on Friday after the company released its financial results for the most recent period.
In the third fiscal quarter of 2022, the company managed to bring in revenues of as much as $4.2 million. While it is true that the revenue figure was far lower than the Wall Street estimates of $5.85 million, it did not lead to an actual selloff in the stock. Usually such a miss often leads to a selloff but it is interesting that such a thing did not happen with the NextPlay stock. The bullish sentiments may have been triggered by the fact that the revenue figure was still 59% higher than what NextPlay had generated in the previous quarter.
Key Quote
“The increase in our third quarter revenues and significant gross margin expansion demonstrate that we’ve arrived at a major inflection point in our growth and development strategy as we gradually and successfully integrate several components of recent synergistic acquisitions to transform our business,” commented NextPlay co-CEO, Nithinan ‘Jessie’ Boonyawattanapisut. “This was the first full quarter that showed 100% contribution from these acquisitions, and we believe that it represents the foundation for further growth and expansion. We are now focused on actualizing operational and sales efficiencies by deepening operations integration, and by cross-selling new products across divisions.”
Technical Data
NXTP stock is below the 20-Day and 50-Day Moving averages of $0.83 and $1.02 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.92. The stock is down 17% in the past month.
