Both Meme Traders and Cautious Investors Should Consider Inspirato Stock

  • Inspirato (ISPO) stock got a powerful boost from social media traders not long ago.
  • Even if you’re not into quick trades, you can still bet on Inspirato as the company highlights substantial revenue growth.
  • Investors should consider taking a chance on Inspirato as the share price could move far beyond $10.
beautiful inspirational landscape with hot air balloon flying in the sky, travel destination, IPSO sells travel subscriptions

Source: Song_about_summer / Shutterstock.com

Inspirato (NASDAQ:ISPO) provides luxury travel experiences through a subscription-based business model. ISPO stock is a fast mover with the potential to move into the double digits for the long term.

As we’ll see, $10 is an important level to watch if you’re planning to hold shares of Inspirato. With some help from social media traders, the stock could clear that hurdle and then go much higher.

Yet, even beyond the technicals, there’s a bullish argument to be built in favor of Inspirato. Indeed, the data will reveal that Inspirato is a worthy up-and-comer in the luxury hospitality market today.

Ticker Company Current Price
ISPO Inspirato $6.78

What’s Happening With ISPO Stock?

You probably will recall how the meme stock trade became popular in early 2021. Low-priced stocks were often targeted for spectacular short squeezes during that time.

A year later, it looks like the meme stock phenomenon is making a comeback, although it’s not quite as hype-fueled as it was in 2021. Since ISPO stock is low-priced, it was a prime target for users of Reddit and other social media platforms.

InvestorPlace contributor William White observed, 6 million Inspirato shares changed hands on March 31, as day traders across social media boosted the stock higher.

The daily average trading volume for ISPO stock was around 984,000 shares at that time, and the stock pushed above $10 for a brief period. Clearly, Inspirato was generating buzz on Wall Street. We can’t easily prove that Reddit user and other social media traders were involved, but it certainly seems likely.

Moreover, this wasn’t the first time the Inspirato share price spiked higher. Amazingly, the stock zoomed from $11 to $108 soon after Inspirato debuted on the Nasdaq exchange on Feb. 14, 2022. Hence, on a technical level, ISPO stock has the potential to fly high at any given moment. It could be reloading for another run at $10 and higher, with or without the help of social media traders.

Undeniable Revenue Growth

Beyond the technical considerations, is Inspirato able to generate sales from its subscription-based business model?

Certainly, we can discern that the company is in growth mode. For instance, Inspirato just added 37 luxury residences at Canoe Place in the Hamptons (in the northeast U.S.) to the company’s portfolio.

“With the addition of these exceptional new residences, Inspirato has established a major footprint in one of the most desirable vacation destinations in the world,” commented Inspirato co-founder and CEO Brent Handler.

That’s a great sign, and there’s even more positive news. Despite the lingering presence of Covid-19, Inspirato booked record 2021 revenue totaling $235 million. This figure exceeded guidance by $13 million, and reflected a year-over-year increase of 42%.

Clearly, Inspirato is demonstrating revenue growth and prospective investors should take notice of this. Moreover, if you’re concerned about the company’s financials, you don’t need to worry. As it turns out, Inspirato posted record cash flow from operations in 2021, totaling $29 million and signifying a year-over-year 148% improvement.

In light of those startling stats, Inspirato’s CEO has every right to remain confident about the company’s future prospects. “Looking forward, we are well positioned to accelerate our mission of revolutionizing luxury travel with our proprietary next-generation travel subscription platform,” Handler assured.

How to Approach Inspirato Stock Today

Sure, you can try out ISPO stock if you’re expecting social media traders to give it another boost. It’s an exciting prospect, but it’s difficult to predict what the meme stock traders will do next.

For more cautious investors who don’t want to follow meme stock trades, there’s another way to look at Inspirato. Consider a long position in the company if you simply want to invest in a subscription-based hospitality business with demonstrated revenue growth and a notable portfolio of luxury accommodations.

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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Article printed from InvestorPlace Media, https://investorplace.com/2022/04/both-meme-traders-and-cautious-investors-should-consider-ispo-stock/.

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