Investors in Alfi (NASDAQ:ALF) and ALF stock are seeing momentum continue today. Indeed, Alfi’s move of more than 12% higher at the time of writing is impressive. That is, when one puts this move in the context of how ALF stock has shot higher this past month.
Over the past four weeks, ALF stock has moved from the $3.50 level to more than $15 per share. Accordingly, investors who got in early on this play have seen a 4-bagger in a very short amount of time. Such an outsized move may be unsustainable in the long run.
Indeed, with volatility picking up in ALF stock, it’s clear that this is a company that’s seeing something else going on. Retail investors appear to be targeting ALF stock as a potential short squeeze play. The company’s relatively high short interest level and cheap stock price has made it so. Additionally, a share buyback announcement as well as an advertising deal with Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) has sent this stock skyrocketing.
Today, Alfi has another catalyst taking shares higher.
ALF Stock Higher on Uber and Lyft Update
Alfi announced the company has commenced installation of the previously-announced 10,000 digital advertising screens with Uber and Lyft.
These tablets will be installed in the Orlando and Tampa areas, beginning July 18. This announcement follows a previous rollout in Miami which appears to have gone smoothly.
For investors seeking recurring revenue business models, Alfi’s is one investors are looking at today. These digital advertising screens provide recurring revenue streams to Alfi, Uber and Lyft, while enhancing the passenger experience. Accordingly, investors appear to be viewing this rollout as a win-win-win agreement between all parties.
Depending on how successful and profitable this rollout turns out to be, investors could certainly have a decent opportunity with ALF stock. After all, this is a company that’s still a relatively small-cap name, with a market capitalization of only $220 million.
However, as with any stock that has appreciated this quickly, investors should take caution at these levels. A lot of good news is likely priced into ALF stock today. Accordingly, this is a stock investors will likely have to watch closely in the coming weeks.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.