Why Is GreenBox POS (GBOX) Stock Up 100% Today?


  • GreenBox POS (GBOX) soared more than 100% today after reporting earnings.
  • The company also announced the appointment of a new CFO.
  • However, it appears retail buying interest is at the heart of today’s outsized move in GBOX stock.
GBOX stock - Why Is GreenBox POS (GBOX) Stock Up 100% Today?

Source: shutterstock.com/Vector memory

Among the speculative buying frenzy we’re seeing today, there are a number of stocks that are grabbing some serious investor interest. One such company is GreenBox POS (NASDAQ:GBOX), which is rocketing higher. Earlier today, GBOX stock was up more than 100% on an otherwise mixed day in the markets.

Greenbox did report earnings yesterday, which appear to have beat expectations by a wide margin. The company’s Q2 processing revenue of more than $1 billion eclipsed the company’s internal projections by more than 50%. These numbers also represent a 40% increase quarter-over-quarter, and a more than doubling year-over-year.

This blockchain-based payments solutions company has certainly rode the wave of interest in the combination of crypto and traditional financial infrastructure. Investors are betting Greenbox will be a leader in integrating crypto into this fast-growing space.

Another item of note investors appear to be cheering today is the company’s appointment of a new CFO. J. Drew Byelick will replace Ben Chung, effective immediately.

Let’s dive into what to make of today’s price action in GreenBox.

GBOX Stock Soars on Strong Earnings

There certainly appears to be a lot to like about the growth trajectory of GreenBox’s core business. With processing volumes of more than $1 billion and revenues of $7 million this past quarter, the company’s forward-looking prospects certainly look bright.

That said, after today’s rise, GreenBox is now trading at a valuation of more than $100 million. This implies a price-sales ratio around 14.5x. That’s high, even compared to most high-flying growth stocks. Accordingly, it appears some level of retail speculation is driving today’s move.

Given the outsized moves we’re seeing in other meme stocks, perhaps this isn’t surprising. More could be in store if retail investors continue to play the options game with such stocks. Indeed, given the company’s price per share around $2.50, options are cheap, making speculative bets more enticing. After today’s price action, it will be interesting to watch how this stock performs from here.

Personally, I think GBOX stock has flown too high, too fast. That said, we’ve seen what other meme stocks have done of late, so anything’s possible.

On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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