Financial News
BlackBoxStocks, Inc. Scores NASDAQ Uplist, Shares Spike 16% Intraday Above Upsized Public Offering Price (NASDAQ: BLBX)
BlackBoxStocks (NASDAQ: BLBX) has reached another milestone. In fact, two. On Wednesday, BLBX announced its stock uplisted to the NASDAQ markets from its previous OTC listing. In addition, the company completed a successful public offering at $5.00 a share, raising $12 million before expenses. And here's the best part- investors like the news, sending BLBX stock higher by more than 16% intraday over its offering price at press time. But that's to be expected. Why? A few reasons.
One of them is that they are in the right sector at the right time. Another is that BLBX has a best-in-class trading platform taking advantage of massive growth in the retail trading markets. But perhaps the biggest reason for BLBX's spike in share price could be the result of Forbes noting that the fintech sector has received a record $91.5 billion in global funding this year. Even better, they don't expect that trend to slow down. And for BLBX, that's more than excellent news; it creates a perfect storm of opportunity to expand its brand and put its valuable trading platform into the hands of millions. Best of all, platform users and investors are paying attention.
In fact, so are the institutional investors that ponied up $12 million. Still, history shows that investors in BLBX stock can do well too. Actually, with an almost 200% surge in value since August before Wednesday's offering, they already are. The better news is that its Q2 report suggests that trend will continue.
Revenues Spike 81% In Q2
In August, BlackBoxStocks Inc. announced an 81% surge in Q2 revenues over the same quarter last year. While impressive, so was its 141% increase in sales for the six-month comparative period. There's better news- it's more than $2.9 million generated during the first six months of the year came with a tailwind. Moreover, in its report, BLBX management guided that while 2021 was an excellent year, 2022 can be a transformational one.
This is important to note- the increases are intentional. In other words, BLBX is proving that its strategy to drive revenues and increase its user base is working. And with hundreds of thousands of dollars used to improve marketing and enhance its industry-leading technology, it's good to know the returns are positive. Better yet, they continue to put revenues to good use by implementing new technology designed to allow BLBX to scale even faster. Thus, growth is happening today. In fact, BLBX is pretty clear that creating value isn't only a long-term objective. They plan to see accretive results by the end of 2021. With its Q3 report imminent, investors won't wait long to find out.
Of course, give credit where it's due. BLBX's revenue growth is a result of having an excellent product and platform. BlackBoxStocks is. And users are taking notice, with BlackBoxStocks a favorite among traders that demand real-time data and fast, accurate information. That user adoption is well-deserved, especially with users benefiting from a powerful financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders.
But, as valuable as those features are, there's more to like. Its biggest attraction could be from the platform's innovative software that takes the guesswork out of trading by employing "predictive technology" enhanced by AI to find volatility and unusual market activity resulting in rapid price changes of a stock or option. Simply put, within a millisecond, BlackBoxStocks finds trades that retail investors have historically missed. And with high-frequency trading and dark pools exploited by institutional traders, having a tool to level the investment playing field is more than necessary- it's essential for trading survival.
Here's the kicker- BlackBoxStocks is easy to use, and its learning curve takes hours instead of months. In fact, the technology does the legwork.
BlackBoxStocks Is Fast and Furious
Oh, and it's fast- really fast. The embedded technology continuously scans the NASDAQ, New York Stock Exchange, CBOE, and all other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. Not only that, but the platform also provides its users with a fully interactive social media platform integrated into a well-designed dashboard enabling users to exchange information and ideas quickly and efficiently through a shared network.
And for more sophisticated traders and those taking advantage by participating from the sidelines, the platform provides a live audio/video feature allowing its members to broadcast on their own channels to share trade ideas. Hence, for those using the tool in a trading community, utilizing the benefits of knowledge, speed, and access to real-time information can be the split-second difference between winning and losing trades. By the way, big brands are taking an interest as well.
Last year, BLBX teamed its powerful platform with the innovative and market-leading tools at TradeStation. That deal is a win-win-win for everyone involved, but more so for users by enabling them to trade stocks and options via TradeStation without ever leaving the BlackBox platform. And it's especially excellent news for BLBX by making them one of the only companies offering a financial technology and social media hybrid platform that provides real-time proprietary analytics for stock and options traders of all levels.
Indeed, users responded well. And rightfully so. The partnership immediately provided new and existing users with a Quick-Click feature that loads proprietary automated alerts for options contracts through a simple two-click process. The genius of the integration is in its simplicity. And without having to know how, the most important feature is that it saves traders valuable time on order entry and execution. After all, when it comes to trading, having time on your side is an invaluable asset. Here's another advantage. Users get a dual benefit from real-time BlackBox trading alerts and from TradeStation's discounted trading rate with no ticket fee to BlackBox members using this feature.
Perhaps best of all, both companies are combining proprietary efficiencies to provide users a lightning-fast order entry system to dramatically reduce the time it takes to enter options contracts. That speed can be the difference between successful and ineffective trading strategies. As noted, the process is simple to follow. Users simply click on any of BlackBox's proprietary options alerts or options flow data, click the highlighted trade button, and watch the trade get executed. The partnership is transformative to BLBX. Of course, it's likely a reason for the surge in share price and record-setting revenues.
Still, while past performance provides a historical perspective, investors trade in the present and the future. The excellent news there is that BLBX is performing ahead of expectations. And that's an excellent indicator for those trading on trends.
Record-Setting Performance YTD 2021
Investors following BLBX know that 2020 was an excellent year of growth. And the better news is that the trend is more than in place; it's accelerating. In Q1 of this year, BLBX posted a 259% jump in revenues to $1.5 million compared to the same period last year. Even better, they generated an operating income of $145,132 for the first quarter of 2021 compared to a loss from operations of $230,713 last year. Not only that, BLBX ended that quarter in its best cash position ever.
As noted, that trend continues. BLBX reported an 81% and 141% spike in revenues for the three and six months ending June 30, 2021, respectively. And guidance suggests that revenue-generating momentum is at BLBX's back in Q3 and Q4. Better still, with its uplist to NASDAQ complete and having plenty of cash in the bank, BLBX is better positioned than ever to create shareholder value by maximizing its operating tailwind.
Keep this in mind, too. While prior quarters justify its current valuation, the news from Wednesday supports a premium. After all, the fintech sector is booming, retail investment is surging, and BLBX is unique in providing tools and technology once reserved for professional traders. Best of all, BLBX's plan is in motion and leverages technology, brand, and partnership muscle to accelerate its mission to earn a sizable share of a multi-billion-dollar retail trading market.
Thus, the bottom line is simple- with BLBX leveling the playing field and its platform helpful to millions of traders, the value proposition at current prices is more than attractive; it's compelling. And taking advantage ahead of another expected record-setting performance may be a wise decision.
In fact, with traders buying shares above the offering price yesterday, the bulls appear to be in control. Following the herd may not be a bad idea.
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