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Bird Global (BRDS) Stock Price Rallied 26.3% on Expansion Plans

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Updated 24 Aug 2022

Key points:

  • Birds Global (BRDS) stock price rallied 26.3% on expansion to new cities.
  • The micro-mobility company is expanding to more cities ahead of the fall.
  • The firm is targeting the return of college students for the fall semester.

The Bird Global Inc (NYSE: BRDS) stock price rallied 26.26% after the micro-mobility company announced that it had expanded the availability of its services to other US cities, including Memphis, Tennessee,  San Diego, California, Durham, North Carolina, Newark, New Jersey, and Louisville, Kentucky.

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The company confirmed that it would soon expand its shared e-mobility programs to six cities before college students return for the fall semester. Investors cheered the announcement, given the popularity of electric-powered modes of transportation among young people.

Also read: Five Best Green Energy Stocks In 2022.

I can imagine that most college students who do not have a car would readily embrace Bird Global’s electric scooters and bikes, as well as its shared e-mobility rides that do not require them to buy the bikes and scooters since they can pay to use the bikes.

Bird Global announced its expansion plans after the market closed yesterday, triggering a move higher during the aftermarket trading and the rally witnessed today during the premarket session.

The last significant announcement from the micro-mobility company was on August 15, 2022, when it released its Q2 earnings results. The firm generated revenues worth $76.7 million, missing analysts’ consensus estimates of $81.0 million.

The e-mobility company noted that it was on track to report its first pre-tax profit in Q3 2022, which doubles as its 2023 fiscal year, after implementing cost-discipline measures combined with a balanced growth perspective.

Bird Global’s cash and cash equivalents at the end of Q2 rose significantly to $105 million. In addition, the company reassured investors that it had identified significant profit opportunities in its shares mobility solutions, which it would use to optimise its pricing and deployment strategies.

The firm also plans to expand its geographical presence across the United States and other countries, increasing its revenues and potential profits. Investors cheered today’s announcement since the expansion into new cities is aligned with the company’s overall strategy.

*This is not investment advice. Always do your due diligence before making investment decisions.

Bird Global (BRDS) stock price.

Bird Global stock price 24-08-2022
Source: Tradingview

The Bird Global stock price rallied 26.26% to trade at $0.54, rising from Tuesday’s closing price of $0.43.