The Netcapital Inc (NASDAQ: NCPL) stock price rallied 123.8% after releasing the financial results for its fiscal second quarter, the first half of its 2023 fiscal year ended October 31, 2022. Investors reacted positively to the results, as evidenced by the massive rally in NCPL shares.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company grew its second-quarter revenues by 48% to $1.8 million compared to last year, while its half-year revenues surged 71% to $3.1 million. Furthermore, the firm generated a positive operating income in Q2 and H1 compared to the operating loss recorded in 2021.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Tickmill Regulated by the FCA – Read our Review
- Admirals (Admiral Markets) More than 4500 stocks & ETFs available – Read our Review
- Spreadex Spreadex has been around for a long time – Read our Review
- IG Top-tier regulation – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Investors cheered the upbeat financial results as the company recorded an operating profit in H1 2023 compared to the $1.4 million loss recorded in a similar period last year.
Other key milestones achieved by the company include a $1 million debt repayment and the uplisting of its shares to the Nasdaq in July 2022. The company also conducted a successful $5 million equity raise during the financial period.
Netcapital is a fintech company that provides a technology platform that allows private companies to raise capital from investors despite not having access to the public markets. The firm also has an advisory division and a funding portal subsidiary.
Netcapital Inc is the primary company, while Netcapital Advisors is the advisory group. The Netcapital funding portal operates the capital raising platform, is registered with the SEC, and is a member of FINRA.
Cecilia Lenk, Netcapital Inc.’s CEO, said: “Continuing strong business trends fueled our growth across multiple financial and operating measures in the second quarter. Our portfolio companies continued to perform well, and portal activity from private companies seeking capital and private investors funding innovation remains solid. We look forward to similar trends in the second half of our fiscal year 2023.”
Jason Frishman, Netcapital Funding Portal Inc.’s CEO, added: “We have hosted many exciting and lucrative offerings over the past six months and will continue to feature inspiring success stories by our clients in our communications to Netcapital stakeholders. The key purpose of our business is to mentor and support entrepreneurs in their journeys. It’s rewarding to see the benefits of our services as these startups build, expand, and prosper.”
While Netcapital’s prospects are promising, I would wait for a pullback before buying its shares.
*This is not investment advice.
Netcapital (NCPL) stock price.
The Netcapital (NCPL) stock price rallied 123.83% to trade at $3.10, rising from Monday’s closing price of $1.39.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.