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American Virtual Cloud (AVCT) Stock Price Rallied 16.2% Today

Simon Mugo trader
Updated 26 Sep 2022

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Key points:

  • American Virtual Cloud (AVCT) stock price rallied 16.2% despite no news.
  • AVCT stock continues to attract significant attention from retail traders.
  • Many are looking forward to the firm’s potential acquisition.

The American Virtual Cloud Technologies Inc (NASDAQ: AVCT) stock price rallied 16.2% despite the lack of new announcements from the company, which has attracted a lot of interest from retail traders recently.

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The last significant announcement from the company was regarding the appointment of a new CEO and other top executives to steer it forward. The significant interest from retail traders had seen over 4.3 million shares change hands at writing.

Also read: The Best Cheap Tech Stocks Under $10.

The retail investor interest rate in American Virtual Cloud Technologies (AVCT) is driven by the fact that AVCT shares are grossly undervalued, given its current market capitalisation of $41.94 million. Yet, the firm had net assets of $33.59 million at the end of Q2 2022.

American Virtual Cloud Technologies generated revenues worth $7.42 million in the six months to June 30, 2022, which is impressive given its asset base. However, the company’s management team believes that some of its assets are worth much more to the right buyer.

The company was worth much more when its shares traded at a high of over $9 in January 2021 but has since fallen heavily. AVC Technologies’ share price has since fallen below $0.50, erasing significant shareholder value.

Currently, the best outcome for shareholders would be for a suitor to come in and buy the company at a premium. However, AVCT’s cloud-based technologies are in high demand in a fragmented industry, and the firm could grow its customer base if acquired by someone with deep pockets.

Retail investors are betting on a potential acquisition to generate massive returns for them, but there is no clear timeline as to when a takeover or merger might occur. Therefore, investors must be patient with the company and its new leaders.

*This is not investment advice.

American Virtual Cloud (AVCT) stock price chart.

AVC Technologies stock price 26-09-2022
Source: Tradingview

The AVC Technologies (AVCT) stock price rallied 16.23% to trade at $0.39, rising from Friday’s closing price of $0.3381.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading