Beyond stock price went parabolic this week, continuing a trend that started in April when it bottomed at $3.55. It has jumped by over 205% from its lowest point this year, and is hovering at its highest level since October last year. This jump has brought its market cap to over $625 million.
Why Beyond stock price has surged
Beyond is an American company that owns some popular brands like Bed Bath & Beyond, Overstock, and buybuy Baby. It also owns tZERO, a company in the cryptocurrency industry.
The Beyond stock price has surged recently due to the ongoing resurgence of meme companies. Notable companies such as Virgin Galactic, OpenDoor, and Offerpad have all experienced significant surges recently.
Remember, Overstock and Bed Bath & Beyond were some of the original meme stock companies before their merger.
The Beyond stock price soared after the company said that it was considering taking actions to create shareholder value for its tZERO business. Its goal is to take the company public through an initial public offering (IPO).
The management pointed to the fact that the market was more receptive to crypto and other technology companies this year. For example, ReserveOne, a crypto treasury company announced a $1 billion SPAC deal, a sign of high demand.
The company also pointed to Forge Global and EquityZen, which have gone public this year, and the fact that valuations are soaring. Marcus Lemonis, the CEO said:
“After experiencing the capabilities at tZERO through two solid token offerings, assessing the favorable market conditions for peers in this space, and having increased confidence in tZERO’s management team, we believe the time is now for tZERO to improve shareholder value by evaluating various options to become a listed company,”
Beyond’s business to return to growth
The Beyond stock price has surged as investors predict that the company’s business would return to growth next year.
Its most recent results showed that its net revenue plunged by 40% to $232 million. This decline occurred as the company optimized its SKUs, focusing on profitability. The management hopes that these actions will help it achieve profitable growth over time.
These results showed that its loss rose to $40 million, including $17 million of non-core and non-cash expense.
Wall Street analysts expect its second-quarter results to show a 37% plunge in revenue to $250 million. They also expect the annual revenue to come in at $1.02 billion, down by 26% from last year.
Beyon is then expected to return to growth in 2026, when its revenue will jump by 12% to $1.1 billion and its loss-per-share will improve to 91 cents.
Beyond share price analysis
BYON stock chart | Source: TradingView
The daily chart shows that the Beyond share price bottomed at $3.54 in April this year. It has formed a rounded bottom, which is part of the cup-and-handle pattern, a popular bullish continuation sign.
The stock is about to form the highly bullish golden cross pattern, which happens when the 50-day and 200-day moving averages cross each other.
Therefore, a combination of these patterns point to more gains, potentially to the next key resistance point at $15. A move below the 200-day moving average will invalidate the bullish view.
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