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Blackboxstocks, Inc. Shares Surge After Guiding To Record-Setting Q4 And 2021 Performance; Short Squeeze May Tighten (NASDAQ: BLBX)

Blackboxstocks (NASDAQ: BLBX) shares surged by 24% since last week. And the jump was warranted, with investors responding well to BLBX announcing yet another milestone reached. This time, the company said it reached a new high in paid subscribers, breaking the 6,000 active paid subscribers threshold for the first time. That's indeed good news. But it gets even better. BLBX further guided to record-high revenue in Q4, expecting a comparative increase between 45%-50%. For those that need more, here you go- BLBX expects to post record annual revenue for 2021 as well. And they aren't stopping there.

Expectations are for growth to accelerate in 2022. In fact, reaching a new subscriber high is likely only the prelude to better things to come. After all, revenue-generating momentum, the primary driver of shareholder value, is at BLBX's back too. And after a successful public offering that added about $12 million to its capital coffers, a strong year in 2021 could lead to an exceptional one in 2022. 

Better still, the indicators are in place for that to happen. That's because while its organic growth has been impressive, new capital from its successful $12 million offering is being put to work to fuel product development and to launch its most aggressive marketing campaign in history. Thus, while the 6,000 number is a result of having an excellent platform, a targeted and fully funded ad campaign could quickly put another digit ahead of that total.

Consider that a reasonable assumption, too. BLBX has made clear that its 2021-22 mission to get its platform into traders' hands is only getting started. And with a surge in the democratized trading movement combined with a healthy bank account, BLBX is indeed exploiting a perfect storm of opportunity.



Video Link: https://www.youtube.com/embed/wP35QHAb-X8

Squeezing The Shorts From A Position Of Strength

And that storm is adding a tailwind. In addition to BLBX doing its part to increase shareholder value, recent short-selling in the stock after its public offering may add rocket fuel to the cause. To those not following, a massive and apparent coordinated short sale campaign hit BLBX shares almost instantaneous to its NASDAQ uplist. The position was created despite BLBX having less than 13 million shares outstanding, with a good part of those restricted. Indeed, by all measures, the risk-reward profile was weak at best. 

But now it's looking worse. Beyond holding a position with unlimited loss exposure, BLBX is squeezing short-side investors by doing what good companies do to fight back- post solid updates. And the news published last week intends to send a message that shorting BLBX can be catastrophic to a portfolio. In fact, that end-game may be in play. While volume ahead of the holiday may not be strong enough to generate maximum pressure on the shorts, the 18% surge since Wednesday alone is indeed sending a message. Cover while you can.

After all, record growth, a strong balance sheet, and a best-in-class trading platform are nothing to bet against. Moreover, insiders are keeping their shares tightly held. Despite rumors contrary, BLBX management went on the record to assure investors that leadership is well-aligned with its base to drive shareholder value higher sooner than later. 

That announcement not only reassured its base but also sent BLBX soaring by more than 21%. Also, despite BLBX shares still trading below the $5.00 public offering price set two weeks ago, charts indicate that the zig-zagging in share price has shorts trying to methodically cover positions. If so, their decision may be more than timely; it can save whatever short-term profits remain. 

Still, while a potential near-term value kicker may be in play, investors shouldn't be distracted from the underlying thesis about the BLBX trade. Investing in BLBX isn't only about squeezing the shorts for quick gains. The long-term value proposition should be the primary attraction.

Best-In-Class Platform With Partnership Strength

And that attraction is deserved, especially with BLBX owning and serving up a best-in-class, some say best-in-industry, trading platform. And not only is it a powerful product in its own right, but a working relationship with TradeStation (NYSE: QFTA) to enhance its already comprehensive platform features makes it even better. In fact, TradeStation helped take an already excellent platform to the next level, with integrations providing traders and investors with real-time information and insight into the stock market.

And don't underestimate both the immediate and long-term impact of that relationship. By integrating its powerful tools with the market-leading ones at TradeStation, BLBX transformed itself into a one-stop trading spot for novice and professional traders. And the interest did more than validate BLBX. It gave BLBX users the ability to trade stocks and options via TradeStation without ever leaving the Blackbox platform. Not only that, it made BLBX one of the only companies offering a financial technology and social media hybrid platform providing real-time proprietary analytics for stock and options traders of all levels. Social media comments refer to the platform as Robinhood on steroids. Why?

Because Blackboxstocks is more than a simple news/buy/sell trading tool. Beyond what's expected, the combination of resources provides users with a Quick-Click feature that loads proprietary automated alerts for options contracts through a simple two-click process. Better yet, BLBX saves traders crucial time on order entry and execution because of its lightning-fast execution speed. Not only that. 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 the Quick-Click feature. There's more to like.

Perhaps the best part of the platform is that it does most of the pre-trade legwork for its users. After running thousands of scans at a millisecond pace, users are provided proprietary options alerts or options flow data. At that point, it's a simple click of the mouse on the highlighted trade button for orders to get executed at speeds usually reserved for institutional traders. Thus, while the working relationship with TradeStation is undoubtedly transformative to BLBX, the most valuable consideration to those using the platform is that it can lead to winning trades in a bias of the time.

And that doesn't happen by coincidence.

Performance Is Lightning-Fast 

Traders benefit from a lightning-fast trading platform. And more than fast, it's detailed, with embedded technology continuously scanning 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. Beyond that capability, the BLBX platform gives users a fully interactive social media platform integrated into a user-friendly dashboard, enabling them to exchange information and ideas quickly and efficiently through a shared network. That's a massive service.

But, maybe its most significant and popular feature is that the BLBX platform is the ideal tool for retail investors who want to follow more seasoned investors' trades. In other words, the social aspect of the BLBX platform provides a way for some investors to simply follow more savvy ones through its live audio/video feature, allowing members to broadcast on their own channels to share trade ideas. Consider it an elite chat room where followers can do just as well as the leaders. And that makes the BLBX platform ideal for trading communities, and best of all, gives the entire team the simultaneous benefit of knowledge, speed, and access to real-time information.

Thus, with an enhanced marketing campaign and a budget to expand the reach, expect the BLBX platform to become a more mainstream tool in the coming weeks. Yes, weeks. Remember, the pieces are already in place, and the platform is proven. Moreover, BLBX is a company in motion.

Revenues Surge In Q3, Guidance Is Decidedly Bullish

They are also on a revenue-generating roll. Earlier this month, Blackboxstocks reported impressive Q3 and YTD results. Revenues increased by 34% to approximately $1.47 million compared to the comparative period last year. Its nine-month YTD results were even better, with revenues surging by more than 90% to roughly $4.42 million over 2020 totals. Now, with Q4 guidance calling for more records, expectations are for BLBX to reach Adjusted EBITDA positive status sooner than later. Keep in mind, BLBX posted only a $(23,320) loss for nine months ended September 30, 2021, a 73% improvement over last year.

There's more about BLBX to justify the bullish position. As noted, after quarter-end, BLBX completed a $12 million capital raise and uplisted to the NASDAQ Capital Market®. That deal and uplist open the door to a new class of investors previously unable to purchase shares in the company. That's not all.

A significant catalyst to drive user growth is in the sights, with BLBX planning to make its platform available as iOS or Android apps for mobile devices. And that's not a 2022 focus. BLBX expects those apps to be made available before the end of this year. Thus, while BLBX did well to grow its base organically, it's about to be introduced to millions of potential users. With pricing well within reach of investors and trading tools that allow retail investors to compete with the pros, expect its listings to drive a potentially exponential increase in user downloads.

Hence, the value proposition ahead of any news leaves a valuation gap too big to ignore. Savvy investors aren't. And spiriting their interest further is an article in Forbes highlighting that the retail-focused Fintech sector is in a period of hyper-growth, with unicorn investors providing more than $91.5 billion in global funding so far in 2021. More importantly, Forbes doesn't expect the pace of investment to slow. On the contrary, expectations are for substantially more investment dollars to come. 

Of course, that could bode exceptionally well for BLBX. And with $12 million to work with, they sit ideally positioned to capitalize on a perfect storm of revenue-generating opportunity by expanding its brand and putting its Blackboxstocks trading platform into the hands of millions. Yes, with app-based influence, millions.

Fundamentals Power Growth in 2022

Thus, don't allow short-term market fluctuations to disrupt a long-term plan. Blackboxstocks is doing the right things in the right markets at the right time. Orchestrated trading works both ways. While shorts may be having their day, investors that group behind companies with solid fundamentals, proven performance, and best-in-class products usually are the last investors standing. No coordination is needed. Buy and hold.

That's the position best suited for those considering BLBX. Keep in mind that its capital structure is impressive. Its operating performance is posting records. It has industry-best relationships and is about to make its platform available to millions through iOS and Android apps. Combined, it's a powerful arsenal for near and long-term growth. And guidance last week for more record-setting revenue growth adds more potency to the investment consideration.

Thus, while the rally in progress is inviting, consider looking past the noise and value BLBX based on the known values. After all, recognizing the pace of revenue growth is a better indicator of long-term value than a stock price showing signs of an irrational disconnect. At times, investing in the company, not the stock, makes better sense. 

Further, it's often good to follow the money. And knowing that institutional investors considered the stock attractive at $5.00 and put their clients in as well, at its current $3.55, the value proposition looks better than any time in its trading history.

 

Disclaimers: Shore Thing Media, LLC. (STM, LLC.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to twenty-five-thousand dollars cash via wire transfer by a third party to produce and syndicate content for BlackBoxStocks, Inc. for a period of one month. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website by visiting primetimeprofiles.com/disclaimer.

The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.

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