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Although shares of advertising software start-up Phunware, Inc. (PHUN)—which is linked to former President Donald Trump—skyrocketed in price in October due to the Trump-related frenzy on major Reddit forums, its revenues decreased 31% year-over-year to $2.16 million in its last reported quarter. Its gross profit declined 49.2% from its year-ago value to $1.13 million. While the stock gained 290.5% in price over the past three months, it has lost 61.3% over the past month. The stock began retreating after the ex-president detailed his social media plans in October. Considering PHUN’s weak financials, we think the stock is best avoided now.
We think fundamentally sound software stocks Rimini Street, Inc. (RMNI), NetSol Technologies, Inc. (NTWK), Evolving Systems, Inc. (EVOL), and SilverSun Technologies, Inc. (SSNT), which are currently trading at less than $10, could be ideal bets instead to capitalize on the industry’s solid growth prospects.
