A small, money-losing Trump-related software company has skyrocketing inventory, but what’s behind all that PHUN?
At some point early on Friday, shares of Phunware PHUN,
had jumped more than 1,100%, giving the company a market cap of almost $ 2 billion.
That’s not too bad for a relatively small Austin, Texas-based tech company specializing in adware through mobile apps and location tracking which, according to its own financial data, achieved a net loss of 8. , $ 3 million in the second quarter of 2021 on net income of $ 1.4 million.
Phunware, founded in 2009, went public through a SPAC in December 2018 and rose to prominence in 2019 for its work with the Trump / Pence re-election campaign. Phunware was reportedly awarded a $ 3 million contract from former Trump campaign manager Brad Parscale, and his shares rose from $ 10 per share in December 2018 to over $ 300 per share on February 1, 2019.
In April 2019, however, the shares were trading below $ 6.
A year later, the company received a delisting warning from NASDAQ after its shares traded below $ 1 for 30 consecutive days. That same month, it was revealed that Phunware had applied for and received $ 2,850,336 in loans from JP Morgan Chase’s Paycheck Protection Program, despite being a publicly traded company.
Phunware COO Randall Crowder defended the PPP loan at the time by telling a local Texas news station that the company was in too dire a situation not to take the money.
“Phunware is an 11-year-old technology company with a market capitalization of approximately $ 25 million and 56 employees. We haven’t been profitable in the last 11 years, ”Crowder explained at the time. “Banks don’t lend to unprofitable technology companies. There is no access to capital.
Phunware managed to push its stock price back above a dollar in time to calm its trade, but the stock has since languished and was trading at $ 0.90 a share on October 8.
But thanks to retail investors caught up in what appears to be a MAGA memorial, Phunware’s previous relationship with Trump through his licensed assistant Parscale makes it a possible investment game for anyone looking to capitalize on the mad foam around Trump’s announced deal with SPAC Digital World Acquisition Corp. DWAC,
The former president’s fledgling Trump Media & Technology group went public with its own reverse merger this week.
On a subreddit, users encouraged each other to continue buying PHUN shares and remind the group of the massive price hike of 2019.
“This stock hit $ 500 per person in 2019,” the headline of one article read. “That being said, we all know it’s possible to go even higher now.”
Commentators on this article agreed with the sentiment, with many users annoyed that the stock was meeting resistance at $ 20 while a significantly larger quota made it clear that they were selling their shares in the producer. Sundial Growers SNDL cannabis,
to transfer their money to PHUN.
On Twitter, users supporting PHUN had “phun” with the ticker symbol and predicted the stock would rise further, cementing their claims with pro-Trump memes.
While Phunware’s big initial gains had been reduced to “only” a 600% gain on Friday at noon, retailer interest in DWAC remained strong, with the stock climbing another 140% by noon, pushing its price growth. over two days at more than 900%.