AutoWeb Inc. (NASDAQ:AUTO) Stock Turns Bullish On High Volume: Time to Buy?

AutoWeb Inc. (NASDAQ:AUTO) jumped 20% on no news. The company recently reported its Q1 2021 financial results in which total revenue was $17.9 million, which is a drop from $24.5 million posted in Q1 2020, with a net income of $0.3 million.

The revenue drop is primarily due to low click values driven by uneven COVID-19 recovery and seasonality in the automotive sector. The company prudently manages its marketing spend to maintain the lead and click volumes relative to market demand in the currently challenging environment.

Jared Rowe, the company’s CEO, said that Q1 2021 results show operating momentum in AutoWeb’s business and continued efficiency. In addition, he said that although Q1 represented a seasonal low for the company, they had sequential top-line growth as the company delivered clicks and leads to partners. Similarly, the company delivered YoY bottom-line growth with 1060 basis point expansion in gross margin and positive adjusted EBITDA and income. So in the weeks to come, AUTO is a stock to watch.

Market Reaction:

On Monday, AUTO stock jumped 20.20% at $3.57 with more than 626k shares, compared to its average volume of 76k shares. The stock had moved within a range of 3.0110 – 3.6900 after opening the trade at $3.06. Over the past 52-week, the stock has been trading within a range of $1.1100 – 5.9700.