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Blackboxstocks, Inc. Shares Soar On Massive Q4 Earnings Beat; Short-Sellers Cover In Active Session ($BLBX)

Blackboxstocks, Inc. Shares Soar On Massive Q4 Earnings Beat; Short-Sellers Cover In Active Session ($BLBX)

Blackboxstocks Inc. (NASDAQ: BLBX) shares are exploding to the upside by 19% to $3.20, following an impressive 12% spike during the regular session. Since March 28th, BLBX stock has been on fire, powering higher by 86% at press time. No one likes to say, "we told you so'" but Greenlightstocks has been on the story since January, never wavering from the bullish thesis.

We contend that any potential pullback presents an opportunity, noting that the short position in BLBX was an overdone Reddit-style campaign that took advantage of a low float stock. They attacked a company scoring consecutive revenue growth Q over Q and Year over Year. Thus, those who stayed too long at the short-side party will likely pay dearly when the regular session hits tomorrow.So, what happened? Well, a lot. Foremost, financial results for BLBX's fourth quarter and twelve months ended December 31, 2021, were, in a word, phenomenal. Blackboxstocks reported total revenue for the fourth quarter ended December 31, 2021, of $1,687,237, an increase of 62% over the fourth quarter of 2020. It was also the highest ever quarterly revenue in BLBX history. The excellent news didn't stop there.

The company further announced posting $6,112,324 in year-end revenues, an increase of 82% compared to the $3,367,563 posted in 2020. It gets better still.The gross margin for the fourth quarter was $1,110,834, an increase of 105%, compared to $542,538 in the fourth quarter of 2020. Yes, better yet, gross margin for 2021 was $4,260,969, an increase of 97%, compared to $2,166,243 scored in 2020. In addition, and for those that appreciate strong balance sheets, BLBX ended the quarter with cash and marketable securities totaling $10,442,379 on December 31, 2021, compared to $972,825 for the prior year, which includes proceeds from the Company's initial public offering in November of 2021.

Bulls take The Reins

The commentary was equally bullish and set the stage for more gains. Blackbox said it leveraged strong membership growth in both the fourth quarter and full-year to generate record revenue and stronger gross margin growth in both periods. The report, in all respects, represents a breakout year for the company, and it's a testament to having an excellent team, a compelling product, well-targeted marketing, and a community of users that appreciate the BLBX platform.Gust Kepler, Chief Executive Officer, doubled down on the bullish sentiment, saying, "2021 was a pivotal year for Blackbox. We nearly doubled our revenue from 2020, and we have set our sights on continuing this trajectory in 2022. Armed with the proceeds from our initial public offering last November, we are focused on growing our core business and continuing to introduce new and innovative products to the market."

Investors should keep in mind that BLBX has an ample cash war chest and implemented a share buyback program last year that could take an appreciable number of shares off the market. When that deal started, only about 3.8 million shares were in the trading float. Today, shares appear to be in stronger hands, and if the buyback continues into next week, short-sellers with nowhere to cover could be in dire straights.

Best In Class Trading Platform

Blackboxstocks, Inc. is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels. Its web-based software employs "predictive technology" enhanced by artificial intelligence to find volatility and unusual market activity that may result in the rapid change in the price of a stock or option. Blackbox 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.

BLBX provides users with a fully interactive social media platform integrated into an easy-to-use dashboard, enabling them to exchange information and ideas quickly and efficiently through a shared network.The company recently introduced a live audio/video feature that allows its members to broadcast on their own channels to share trade strategies and market insight within the Blackbox community. Blackbox is a SaaS company with a growing base of users that spans 42 countries; current subscription fees are $99.97 per month or $959.00 annually.

Squeezing The Shorts

Indeed, BLBX may have caught markets by surprise after-hours Thursday. However, clues about the company's growth have been front and center for months. And going forward, results in Q4 could be a precursor of better things to come. With capital, a best-in-industry platform, a growing user base, and a short position running for cover, the next few days, weeks, and quarters will likely be exciting for the BLBX community. Word of caution, earnings patterns suggest staying long.

 

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