You might call it the independent-contractor revolution of the 2020s. As the Covid-19 pandemic gig economy emerged two years ago, workforce management platform ShiftPixy (NASDAQ:PIXY) came onto investors’ radars and PIXY stock garnered some attention on Wall Street.
Even prior to the Covid-19 pandemic, ShiftPixy was ready-made for the shift-worker economy. In the company’s own words, ShiftPixy “helps shift-based business operators navigate regulatory mandates” and “minimize administrative burdens.” Ultimately, the company seeks to connect businesses with an eager part-time workforce.
As the company sees it, ShiftPixy is targeting an addressable market valued at roughly $600 billion, comprising 30 million part-time workers. Furthermore, the company projects eventual revenue of $1 billion and gross profit of $100 million.
But don’t assume that ShiftPixy is solely a shift-worker platform. As the company diversifies its business model, ShiftPixy appears to be a high-potential investment opportunity that’s largely unappreciated on Wall Street.
A Closer Look at PIXY Stock
When I said, “unappreciated,” I wasn’t kidding or exaggerating. Not to be the bearer of bad news, but PIXY stock has lost most of its value over the past few years and has spent the last year as a penny stock.
On Dec. 16, 2019, ShiftPixy enacted a 40-for-1 reverse share split. If we factor that event into the equation, we can calculate a $400+ share price for ShiftPixy in July of 2017.
Today, the shares are worth much less than $400. In fact, they’re not even worth $2 at the moment.
Admittedly, PIXY stock got a couple of quick bumps when the Covid-19 pandemic took hold in the U.S. In April and May of 2020, the stock jumped from as low as $4 to above $10 several times.
That was then, however, and this is now. The onset of Covid-19 was a rare and exceptional catalyst for gig-economy stocks. We can’t reasonably expect ShiftPixy to get another boost like that in 2022.
Expanding the Business Model
Thankfully, there are other reasons to consider a stake in PIXY stock, which don’t require another gig-economy catalyst.
For example, ShiftPixy has created a ghost kitchen incubator. As the company explains, a ghost kitchen is a “delivery-only brand without traditional restaurant operations” or brick-and-mortar locations. Instead, ghost kitchens exist online or in an app, and they deliver food directly to the customers.
ShiftPixy launched its ghost kitchen incubator in August of 2020, during the Covid-19 crisis. “Ghost kitchens and off-premises dining are here to stay, and are growing rapidly,” ShiftPixy co-founder and CEO Scott Absher declared at that time.
This event marked the company’s clear intention to expand beyond its shift-worker-focused business model. By mid-2021, it was reported that ShiftPixy was already working to develop a dozen virtual-restaurant brands.
Head-First Into the NFT Space
The ghost-kitchen-development venture is undoubtedly exciting news for PIXY stock investors. Along with that, however, there’s an equally intriguing business concept that ShiftPixy’s working on in 2022.
Just recently, ShiftPixy announced its development of a non-fungible token (NFT) gamification loyalty program, which the company plans to release this year.
If anybody needed proof that ShiftPixy is more than a gig-economy platform now, this is it. Moreover, ShiftPixy intends to link its NFT loyalty program with the company’s development of ghost-kitchen food brands.
According to the press release, the NFTs will be available to customers who sign up for ShiftPixy’s food-brand-ordering apps. Furthermore, the customers will be able to take their custom NFTs into in-app games. They might even win rewards and free food items, as well.
“As we move forward with this endeavor, we plan to increase our offerings and boost our footprint in the digital world,” Absher stated.
The Bottom Line on PIXY Stock
From gig workers to ghost kitchens and NFTs, there’s a lot more to the story of ShiftPixy than meets the eye.
This is probably a good thing. After all, PIXY stock investors shouldn’t have to rely exclusively on the health of the gig economy.
It will be interesting to see how ShiftPixy continues to develop its venture into the realm of NFTs. Just maybe, the company’s diversification efforts will lift the share price in the long term.
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.
David Moadel has provided compelling content — and crossed the occasional line — on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
