There are two fresh pieces of news related to Helbiz (NASDAQ:HLBZ) stock today. First, Helbiz just provided an update pertaining to a potential reverse split. Additionally, Helbiz plans to incorporate OpenAI’s artificial intelligence (AI) technology, ChatGPT, into “multiple departments of the company.” Overall, financial traders don’t seem very bullish about shares of HLBZ stock right now.
Helbiz provides urban micro-mobility solutions. In other words, the company makes e-scooters, e-bikes and e-mopeds and allows users to rent them via an app.
Is there room for OpenAI’s technology to enhance Helbiz’s operations? Apparently the company thinks so. Helbiz intends to leverage ChatGPT to “personalize customer interactions, improve efficiency and reduce operational costs.”
For example, ChatGPT could help Helbiz’s customer service department provide more personalized, relevant and accurate responses to customer inquiries. ChatGPT may also reduce the number of tasks that need to be elevated to Helbiz’s tech support.
This may sound like a bullish development for HLBZ stock. So, did today’s traders buy shares on this news?
What’s Happening With HLBZ Stock?
Actually, HLBZ stock is dropping 9% this morning. This might seem like a counterintuitive response from the market. Yet, there’s another piece of news to consider.
Most likely, investors are reacting to another update from Helbiz. The company filed a proxy statement with the U.S. Securities and Exchange Commission (SEC) to “hold a special meeting of stockholders to seek approval for a reverse stock split of the Company’s Class A common stock.”
In other words, Helbiz is pushing for shareholders to approve a reverse split of HLBZ stock. Of course, management would prefer that shares reach the $1 threshold in the near future without resorting to a reverse split. That doesn’t seem likely, though, as the stock currently trades far below $1 per share. In order to avoid a delisting from the Nasdaq, a reverse stock split may be inevitable.
So, there’s good news today as Helbiz deploys AI tools, but also worrisome news as it seriously considers a tactic to avoid being delisted. All in all, the sentiment on Wall Street looks bearish. HLBZ stock is firmly in the red today.
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On the date of publication, David Moadel 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.