Blackboxstocks Inc. (NASDAQ: BLBX) shares have been red-hot, surging 86% since March 28th after reporting best-ever revenues and guidance for its bullish momentum to continue through 2022. The move was amplified by a significant short position that may have been caught off guard. Although few have argued against BLBX's ability to continue posting record-setting performances, short-sellers have successfully exploited its low outstanding share count and the associated tight liquidity that comes with it. In other words, BLBX wasn't pushed down because company performance misses the mark; it's a result of short-sellers taking advantage of what is a leveraged trade opportunity.
But, the days of easy money appear to be over. In fact, with revenues surging, a share float getting into tighter hands, and a share buyback program that will take more shares out of circulation, those on the short side may find themselves in a squeeze of massive proportions. Worse, the 86% spike thus far may just be the shot across the bow showing what good news can do for BLBX on any given day. And with over 19 million shares traded last Friday on a float of roughly 4 million, those not covered may experience more pain ahead.
Blog chatter suggests that a rally ala Reddit style may be forming, with that army of retail investors perhaps preparing to close the BLBX short position once and for all. Not only is that effort timely, but they also have the operating performance of BLBX to fuel momentum. It's hard to argue against results.
Last week, BLBX announced fourth quarter and twelve months ended December 31st, 2021, that was, to use a single word- exceptional. Blackboxstocks reported total revenue for the fourth quarter ended December 31st, 2021, of $1,687,237, an increase of 62% over the fourth quarter of 2020. The numbers were impressive, but they also totaled as the highest ever quarterly revenue in BLBX history. The excellent news didn't stop there. The company also posted $6,112,324 in year-end revenues, another best-ever performance that was an 82% increase over last year's comp. There's still more to feed the bulls.
The gross margin for the fourth quarter was $1,110,834, an increase of 105%, compared to $542,538 in the fourth quarter of 2020. Better still, gross margin for all of 2021 was $4,260,969, an increase of 97%, compared to $2,166,243 scored in 2020. And for those that appreciate strong balance sheets, BLBX ended the quarter with cash and marketable securities totaling $10,442,379 on December 31st, 2021, compared to $972,825 for the prior year, a 974% increase that included proceeds from its initial public offering in November of 2021.
Running With The Bulls
Guidance was equally strong, setting the stage for investors to expect more of the same. That's not good news for investors taking the short side of the trade opportunity. Blackboxstocks said it leveraged strong membership growth in the fourth quarter and full-year to generate record revenue and substantial gross margin growth. The report, from any perspective, is a crushing blow to those betting against BLBX becoming a bigger and better company. Moreover, the conference call clarified another thing- this won't be an unusual type of report going forward. In fact, the sentiment suggests the bulls may want to stay seated at the table, with more impressive financial food to devour from BLBX in the queue.
Gust Kepler, Chief Executive Officer, is indeed bullish, saying, "2021 was a pivotal year for Blackboxstocks. We nearly doubled our revenue from 2020, and we have set our sights on continuing this trajectory in 2022. Armed with the proceeds from our initial public offering last November, we are focused on growing our core business and continuing to introduce new and innovative products to the market."
Combining performance, a share buyback program, a bullish CEO, and record-setting expectations ahead, the only savior for shorts could be weak overall markets. But, with traders more comfortable with progress made on the geopolitical front, those weak days could be fewer and far between.
BLBX Is Earning Its Run
That would be bad news for them and great news for BLBX. Keep in mind that BLBX is earning every bit of its recent gains. And the more that investors learn and appreciate what Blackboxstocks has to offer, the more fuel added to its rally. The platform is innovative and potentially the best trading tool in the market.
BLBX is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for traders of all levels of stock and options. Its web-based software employs "predictive technology" enhanced by artificial intelligence to find volatility and unusual market activity that may result in the rapid change in a stock or option price.
Blackboxstocks continuously scans 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. BLBX provides users with a fully interactive social media platform integrated into an easy-to-use dashboard, enabling them to exchange information and ideas quickly and efficiently through a shared network.
The company recently introduced a live audio/video feature that allows its members to broadcast on their own channels to share trade strategies and market insight within the Blackboxstocks community. Blackboxstocks is a SaaS company with a growing base of users that spans 42 countries; current subscription fees are $99.97 per month or $959.00 annually.
Shorts On The Run
Heading into the new trading week, it's expected that the rally will continue once BLBX works through some turbulence from a crazy two days of volume. That's not hype, either. Clues about BLBX's growth have been front and center for months and going forward, results in Q4 could be of better things to come.
With capital, a best-in-industry platform, a growing user base, and a short position running for cover, the next few days, weeks, and quarters will likely be exciting for the BLBX community. For savvy investors, BLBX is a long-term play. Those playing on the short side are playing with financial fire and, for all intents and purposes, may want to re-consider that play.
Blackboxstocks is the real deal. Not only that, they have amassed quite the arsenal to engage aggressive and relentless shorts. This time, bet on BLBX.
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