It’s big news in the technology space – or at least, it ought to be. Special purpose acquisition company Apex Technology Acquisition finally closed its business combination with AvePoint (NASDAQ:AVPT). So, APXT stock has vanished and it has been replaced with AVPT stock.
This marks a new chapter in an exciting story which, I believe, isn’t fully appreciated or covered by the financial press.
Just the fact that there’s a Microsoft (NASDAQ:MSFT) connection here should get people’s attention. Yet, just as APXT mostly stayed under the radar, so does AVPT stock.
Actually, I’m perfectly fine with that. Great wealth can come from investing in tomorrow’s winners today, and AvePoint could easily be one of them.
A Closer Look at AVPT Stock
For much of 2020, APXT did the usual pre-deal-announcement SPAC thing. And by that, I mean it stayed close to $10, day after day.
Then a big shocker happened in late November, when the share price shot up to $15 for a quick 50% gain. The momentum continued after that as the stock touched a 52-week high of $17.90 on January 14.
That was a time of rampant speculation in the markets, but SPAC mania would soon start to wear off.
Unfortunately, the price chasers got punished as APXT/AVPT slid during the ensuing months, landing below $10 in mid-July.
That’s right: the stock came down to its pre-deal-announcement SPAC price, and even a little bit below that.
I can understand having a cooling-off period after the hype fades, but this share-price beatdown seems overdone.
And, that’s where dip-buying opportunities come from. If you believe in AvePoint’s growth story, then this could be the perfect time to grab some shares for a buy-and-hold position.
A Cozy Relationship
I’ll admit it: if it weren’t for the Microsoft connection, AVPT stock wouldn’t have the same relevance that it does today.
That being said, it’s undeniable that partnering with a tech behemoth like Microsoft is a real game changer.
InvestorPlace contributor Chris MacDonald concisely summed up the partnership between the two companies.
“AvePoint has played a large role in data migration to Microsoft’s cloud platforms. Additionally, AvePoint has helped with Microsoft’s various migration projects for Microsoft Teams, SharePoint and other products,” MacDonald explained.
It seems that there’s a cozy business relationship between Microsoft and AvePoint. According to a news release last year, AvePoint grew to serve the largest software-as-a-service (SaaS) user base in the Microsoft 365 ecosystem.
We’re talking about more than 7 million cloud users, and an estimated addressable market of $33 billion by the year 2022.
AvePoint Is On Point
As the business combination with Apex Technology Acquisition finalized, AvePoint CEO and co-founder Tianyi “TJ” Jiang didn’t hesitate to emphasize the Microsoft connection.
Jiang boasted that his company is the largest Microsoft 365 data management solutions provider, while noting AvePoint’s “two decades worth of reimagining how companies work.”
I can’t blame Jiang for bragging about AvePoint. The company offers an outstanding value proposition to tech-focused investors in 2021.
For one thing, AvePoint is debt-free. Moreover, the company is in an elite class fiscally speaking, as it’s “one of eight public software companies with at least $150 million in annual revenue, 25% YoY [year-over-year] growth and a 10% EBITDA margin.”
Plus, in the wake of the Covid-19 pandemic, many companies are switching to a business model that includes remote work collaboration as well as enterprise cloud adoption.
In light of all this, it’s easy to envision a rapid growth trajectory for AvePoint.
The Bottom Line
There’s no denying it: the Microsoft collaboration is among AvePoint’s biggest advantages.
It’s surprising that AvePoint, and its business combination with Apex Technology Acquisition, isn’t front-page news in the trading community.
That could change very soon as AvePoint’s positioned for continued growth. The story of AVPT stock is just starting its most exciting chapter.
On the date of publication, David Moadel 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.