What is going on with ShiftPixy (NASDAQ:PIXY)? Shares of the workforce management platform are up by more than 22% today. Additionally, PIXY stock has increased by more than 40% in the past week. As shares of PIXY pick up steam, social media engagement around the stock is increasing as well. On popular financial site Stocktwits, for instance, the message volume on this company has more than doubled.
So, why is PIXY stock up today? In a surprising twist of events, the company recently announced that it would be taking steps to enter the metaverse. The new venture will be led by ShiftPixy Labs, a subsidiary of the company. ShiftPixy Labs will provide a loyalty program to “immerse our consumer into augmented and mixed reality experiences that will test every tradition and legacy in consumer marketing.” ShiftPixy Lab’s official Twitter (NYSE:TWTR) account has been posting updates about the endeavor as well.
This loyalty program will be geared toward ghost kitchens, such as Nacho Nukes, Dude Rudy and Bunny Grub. A ghost kitchen is a physical space for an operator to provide food to customers. However, the operator does not own the physical space, nor is any sign displayed outside the storefront that indicates that it is a ghost kitchen. Basically, a ghost kitchen rents space in order to sell food on delivery apps like Grubhub (NASDAQ:GRUB) and DoorDash (NYSE:DASH). Consumers like ghost kitchens because it provides more choices for them to select from, or at least the illusion of choices.
So, with all that said, let’s dive into seven facts that investors should know about ShiftPixy and PIXY stock.
PIXY Stock: 7 Things to Know About the Penny Stock
- ShiftPixy’s core business engages in workforce management, helping businesses with shift-based employees to navigate regulatory mandates and handle administrative provisions.
- The company’s human capital management system helps workers with compliance and regulatory policies, such as paid time off (PTO) and worker’s compensation.
- ShiftPixy carries a minuscule market capitalization of $37 million. In addition, the float lies at 12.76 million shares.
- Due to PIXY stock’s low share float, prices may be easily manipulated.
- For the fiscal year ended Aug. 31, ShiftPixy reported revenue of $14.8 million. That was up an impressive 171% year-0ver-year (YOY).
- While losses decreased by $62.5 million compared to the prior year, ShiftPixy remains unprofitable.
- A solid date for ShiftPixy Labs’ metaverse excursion has not been announced yet. However, the ShiftPixy Labs website notes that it is “coming soon.”
On the date of publication, Eddie Pan did not hold (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.