Phunware’s Stock Slumps as Public Offering Prices at $0.06 per Share
December 8, 2023
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Phunware ($NASDAQ:PHUN) Inc., a mobile technology company, has recently seen its stock take a significant dive. This comes after the pricing of its $2.8 million public offering at only $0.06 per share. The company’s suite of fully-integrated solutions include mobile engagement, analytics, location-based services, advertising and loyalty solutions, as well as custom product development. It has relationships with some of the world’s largest brands, including Disney, NBCUniversal, and Univision. The public offering was seen by investors as an opportunity to cash in on the potential of PHUNWARE’s services.
However, it appears that the stock slump has impacted investor confidence, resulting in a significant downturn in the stock price. The company is now faced with the challenge of rebuilding investor confidence and regaining its footing on the stock market.
Stock Price
On Thursday, PHUNWARE Inc. (NASDAQ: PHUN) experienced a massive slump in their stock price on the market. The stock opened at $0.1 per share and closed at $0.1 per share, plunging by 29.1% from its previous closing price of 0.1. The steep decline in the stock price was caused by its public offering, which priced at $0.06 per share. This resulted in a significant decrease in the stock price on the market, as investors reacted to the news. Phunwares_Stock_Slumps_as_Public_Offering_Prices_at_0.06_per_Share”>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Phunware. More…
| Total Revenues | Net Income | Net Margin |
| 15.8 | -40.66 | -193.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Phunware. More…
| Operations | Investing | Financing |
| -19.82 | 15.38 | -1.33 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Phunware. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.81 | 21.25 | 0.05 |
Key Ratios Snapshot
Some of the financial key ratios for Phunware are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.0% | – | -243.9% |
| FCF Margin | ROE | ROA |
| -125.7% | -196.9% | -86.6% |
Analysis
GoodWhale conducted an analysis of PHUNWARE’s wellbeing using the Star Chart. Our findings indicate PHUNWARE is strong in liquidity, medium in growth, and weak in asset, dividend, and profitability. The company has a low health score of 0/10 in relation to cashflows and debt, making it less likely to pay off debt and fund future operations. Based on this data, we classify PHUNWARE as a ‘sloth’, a type of company that has achieved revenue or earnings growth slower than the overall economy. Investors interested in PHUNWARE would likely be those who are seeking a buy-and-hold strategy or those with a long-term focus. They should understand the potential risks associated with investing in PHUNWARE and should be prepared for lower returns than expected. Additionally, investors should be aware of the company’s weak profitability and debt load, which could be prolonged if there is a downturn in the market or industry. Phunwares_Stock_Slumps_as_Public_Offering_Prices_at_0.06_per_Share”>More…
Peers
The Company is a global provider of enterprise class software platforms for mobile that provide contextual mobile experiences for consumers, employees and things. Phunware has created one of the world’s first and only end-to-end cloud-based, multiscreen, multidevice, content management, and big data analytics platform for mobile that can be completely integrated into an existing enterprise ecosystem.
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Summary
Investors in Phunware should be aware that the company’s stock price has recently slumped after it priced its $2.8M public offering at $0.06 per share. This significant drop in stock price could be cause for concern for investors, as it may indicate a lack of confidence in the company or its plans. With that said, investors should do their own due diligence and research before making any decisions about investing in Phunware.
Analyzing the company’s financials, current initiatives, and future plans should help inform any decision to invest. It is also important to consider potential risks associated with investing in this stock as well.
