Phunware Inc (NASDAQ:PHUN) is currently best known for operating its own integrated enterprise cloud platform and yesterday, the company’s stock suffered from a selloff after having recorded enormous gains in recent weeks.
On Thursday, PHUN stock moved down 6.12% at $3.5300 with more than 9.15 million shares, compared to its average volume of 28.51 million shares. The stock has moved within a range of $3.4350 – 3.6900 after opening the trade at $3.6900.
Due to the selloff, the stock tanked by 6% but at the same time, it should be noted that over the course of the past month, the Phunware stock is up by a staggering 245%. On Thursday the stock came into focus after the company announced that it projected revenues to be $25 million for the fiscal year in 2022.
However, that was not all. In addition to that, Phunware also announced a revision to its corporate investment policies. By way of this revision, it will be possible for the company to be more diverse with its investments and potentially bring in higher returns.
The company seeks to bring in higher returns from the cash that it does not need for operational purposes. Matt Aune, who is the Chief Executive Officer of the company, noted that the Phunware had a cash balance of as much as $65 and hence, the company was looking to leverage that cash balance for higher organic growth.
“We were thrilled to announce over $65 million cash on-hand and are committed to leveraging a healthy balance sheet to support long-term organic and inorganic growth initiatives that seek to mitigate an operational backdrop of rapid inflation,” said Matt Aune, CFO of Phunware. “While we expect to more than double organic revenues to $25 million in 2022, our board has also taken a forward-thinking approach to managing our cash reserves and has chosen to leverage Decentralized Finance (DeFi) as a strategic and tactical competitive advantage, including bitcoin, stablecoins and alternative cryptocurrencies.”
PHUN stock is above the 50-Day and 200-Day Moving averages of $2.41 and $1.72 respectively. However, the stock is trading below the 20-Day moving average of $3.74. The stock is up 246% in the past month.