Texas-based mobile tracking and ad serving company Phunware (NASDAQ:PHUN) helps businesses develop and monetize their mobile application portfolios. For folks who don’t mind taking on some risk, PHUN stock could potentially be a multi-bagger in 2022.
The stock is easily affordable for most portfolio sizes, and is capable of moving very quickly. As we’ll see, it’s possible that Reddit traders may have targeted Phunware for a massive short squeeze a few months ago, sending the share price to fresh highs.
If you missed out on that rally, there’s no need to worry. PHUN stock might have another run-up in store, and it could be catalyzed by developments in the fast-paced world of cryptocurrency.
At the same time, Phunware is expanding its business operations abroad and forming key relationships with suppliers. All of this could add up to a prime, tech-focused investing opportunity with Phunware.
PHUN Stock at a Glance
Was it a Reddit-fueled short squeeze, or was it something else? Either way, it certainly must have been fun for PHUN stockholders to watch the share price soar in October of last year.
Month after month, the stock had been trading near $1. On Oct. 22, however, the share price spiked to a high of $24.04.
Some commentators might say that this occurred due to a rumor. Around that time, news spread that the reelection campaign of former President Donald Trump and former Vice President Michael Pence may have been a client of Phunware.
With that, it was rumored that Phunware was possibly involved with Trump Media & Technology Group’s soon-to-be-launched Truth Social platform.
Between that and a Reddit-prompted short squeeze, we can piece together the circumstances that probably led to the rise and fall of PHUN stock.
After all, gossip and meme-stock short squeezes can lead to share price pop-and-drops. Thus, by the end of October, the Truth Social rumors had faded and the stock fell to $4 and change.
Fast-forward to the end of January of 2022, and PHUN stock traded near $2. This represents a major discount on a stock that has gone up to $24 and, it appears, a favorable risk-to-reward scenario.
Expanding Into Asia
Before we address the crypto angle, let’s not forget that Phunware is a highly respected provider of mobile-focused technology solutions.
As such, Phunware has business operations in a number of regions and just recently, the company formed a potent partnership to integrate mobile smart solutions in Asia.
The partnership is with Singapore-based PrimusTech. That company offers a range of services and solutions to support digital transformation, including smart facility management systems and Internet of things (IoT).
Together, the two companies will integrate and offer Phunware’s Smart Solutions on mobile. These Smart Solutions facilitate mobile-focused features and capabilities ranging from contactless digital access and screenings, to feedback tools, news, notifications, analytics and more.
“We’re thrilled to expand into Asia by partnering with a recognized industry-leader like PrimusTech,” commented Randall Crowder, COO of Phunware.
Moreover, PrimusTech’s “customer-centric focus and deep domain expertise enables them to support true digital transformation,” according to Crowder.
Betting Big on Bitcoin
While Phunware’s international expansion into Asia is exciting, let’s not forget that the company has another angle to consider.
Specifically, Phunware is serious about holding Bitcoin (CCC:BTC-USD). We’re not talking about a small quantity of Bitcoin here.
Not long ago, the company purchased 100 BTC, for a total of nearly $5 million.
With this purchase, Phunware now owned approximately 630 BTC, acquired at an aggregate purchase price of roughly $36.8 million.
Therefore, if you’re bullish on Bitcoin, PHUN stock could provide a cheap and indirect way to invest in it.
One thing is undeniable: Phunware’s long-term shareholders know what it’s like to experience fast, powerful returns.
Could there be another rally just around the corner? It depends on the growth potential of Phunware’s Smart Solutions business — which extends to more than one country — as well as the price movements of Bitcoin.
There are a number of moving parts to consider here, but that’s what makes Phunware interesting. So, feel free to consider a small position in PHUN stock if you see potential for Phunware’s tech-centered business interests.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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