While the stock market may be down so far this year, interest in financial markets and trading among retail investors remains extremely robust, helping to propel outperformance by retail-investor-oriented fintech stocks.
Equity and Options trading volume among smaller market participants – ie, other than large institutional players – has been consistently hitting all-time records. Last year, the CBOE
According to a recent piece in the Wall Street Journal published late last year, “Nine of 10 of the most-active call-options trading days in history have taken place in 2021, Cboe Global Markets data show. Almost 39 million option contracts have changed hands on an average day this year, up 31% from 2020 and the highest level since the market’s inception in 1973, according to figures from the Options Clearing Corp.”
We are in a heyday for trading activity among the general public.
One company that has been massively outperforming the market as a result is Blackboxstocks Inc (NASDAQ:BLBX), a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels.
BLBX shares have begun to race higher over the past month, more than doubling while the broad stock market dips lower. But the company’s market cap is still a tiny $48 million, making it one simultaneously one of the smallest and best-performing stocks trading on the Nasdaq right now.
Given that the online trading platform market is estimated to be worth a whopping $15 billion, BLBX has a ton of room to grow as it scales up and takes market share.
That’s one of the reasons why a recent analyst research report (see here) gave this stock an outperform rating and a target solidly above its current levels.
Blackboxstocks Inc (NASDAQ:BLBX) is a rapidly growing trading analytics platform that uniquely provides social engagement and trading education to its users.
According to a recent analytic report, the Company describes itself as ‘Bloomberg meets Twitch’ and cultivates a community of traders who share insights and market trading strategies, complete with ‘Team Traders” (seasoned experienced traders curated from the community) who attempt to demystify and democratize trading for the newer members on the platform and the broader trading public. Subscriptions for the use of the platform are sold on a monthly and/or annual subscription basis to individual consumers through the Company website. The service is only offered through a monthly subscription at $100/month or an annual subscription at $959/year.
The BlackBox Trading Platform has 3 Integrated Features available to all users: Trading Analytics, Social Engagement, and Education.
On the analytics side, the platform has most standard market features including real-time price data and news feeds as well as advanced charting capabilities. In addition, the platform has several proprietary features. These include volatility indicators, algo-driven scanners, stock and options alerts, and option flow scanners.
In terms of social engagement, the BLBX platform provides multiple ways for the user base to interact with one another. These include live streaming of charts and analytics, the ability to view, listen and chat with others on the platform, the capacity to click on tickers from other broadcasters with included dashboard dynamics, and the broad capacity to learn from others in terms of analytics and strategies. This set of functions provides for the ability for participants to monetize their following on outside social platforms via the Blackbox affiliate program. According to a recent report, the affiliate program in particular provides a financial incentive for BLBX members to promote the platform on all of their major social media platforms. Many BLBX affiliates are seasoned traders that have a large social community of followers on Twitter, Facebook, YouTube, etc. They target potential subscribers from their follower base to join BLBX and act as mentors in the community platform providing advice and education in dedicated BLBX rooms and channels. Affiliates earn $25/month each month for referrals for the duration of the subscription, and also earn $250/year for each yearly referral.
On the Education side, trading stocks or options can be intimidating to the new user. BLBX offers a full education calendar for users to learn various aspects of trading, including topics such as Option Flow, Trading bootcamps, etc. The Education feature alone can allow for many users to stick to their monthly subscription for an extended period and prevents ‘Quick View’ cancellations.
Growth. Given this business model, and the company’s full services and feature-set, one would expect this to be a growing service. And one would be right. BLBX has seen rapid user growth from just under 1,200 at the beginning of 2020 to now well over 6,000 (as of late last year), and possibly much higher. This growth has been driven by an aggressive marketing campaign by the company. Monthly recurring revenue has scaled up sharply, and analysts are looking for that trend to continue.
The main catalyst in play right now is the company’s record-setting financial results for the fourth quarter and twelve months ended December 31, 2021:
“Blackbox leveraged strong membership growth in both the fourth quarter and full year to generate record revenue and stronger gross margin growth in both periods. This breakout year is a testament to the entire Blackbox community, and we want to thank our members, moderators, developers and corporate team for their hard work and support,” commented Robert Winspear, Chief Financial Officer.
Buyback. The company also recently announced that its Board of Directors approved a stock repurchase program for up to $2.5 million of the Company’s common stock.
According to the release, the repurchase plan will expire on December 31, 2022. The timing and actual number of shares repurchased will depend on a variety of factors including but not limited to share price, trading volume, general business and market conditions as well as other potential investment opportunities. The repurchase program will be executed consistent with the Company’s capital allocation strategy, which will continue to prioritize aggressive investments to grow the business.
“This stock repurchase program demonstrates management’s confidence in our business prospects and enables us to purchase shares at what we believe to be a significant discount to their intrinsic value,” said Robert Winspear, Chief Financial Officer of Blackboxstocks. “We believe we can leverage the strength of our balance sheet to execute this plan without impeding any of our growth initiatives.”
Bullish Analyst Report. The company also recently announced – as noted above – that Noble Capital Markets has initiated company-sponsored equity research coverage on the Company. The full report by Noble Capital Markets Senior Research Analyst Joe Gomes can be found here.
Projections from the report: “We believe Blackboxstocks is at an inflection point with significant organic growth opportunities. Management’s goal is to double revenue in 2022. We are being a little more conservative and our estimating 1Q22 revenue at $1.9 million, up from our previous $1.66 million, and a loss of $0.05 per share. For the full year we are projecting revenue of $11.7 million, up from our prior $7.8 million estimate, and a loss of $0.07 per share.”
In other words, analysts are looking for BLBX to double revenues again on a y/y basis in 2022 despite coming off the company’s best year ever in 2021.
BLBX shares have been exploding higher over the past month as the company’s performance scales up and its user base reaches new highs.
The stock is now trading well above its rising 50-day moving average after a significant technical breakout in late March that drove shares through the bear trend line and MA resistance.
BLBX is now pushing hard against key resistance in the $4/share area. If that level is taken out, we could see some potential for a gap-fill run to challenge the 11/09/2021 gap in the $7 area.
BLBX is in the sweet spot for markets right now. The retail-focused fintech services space is well-suited to a late-stage bull market context. More and more people are becoming active market participants, which points to a growing market for the company’s services.
Options trading is consistently recording all-time highs due to rampant participation by retail traders, helping to drive a powerful context for fintech trading and market data platforms geared toward that market segment.
With a total addressable market of at least $15 billion, BLBX has enormous room to grow. The company is marketing aggressively, and subscribership growth has been accelerating, along with recurring revenues.
BLBX is trading on a tiny float after being uplisted onto the Nasdaq exchange. With a tiny market cap of just $48 million, there’s plenty of potential upside if the stock manages to break out above the key resistance, where it has been coiling up since recording its best quarter and year ever.
This report is for information purposes only and is neither a solicitation or recommendation to buy nor an offer to sell securities. The Bull Report is not-a-registered-investment-advisor. The Bull Report is not a broker-dealer. Information, opinions, and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. The Bull Report accepts no liability for any losses arising from an investor’s reliance on the use of this material. Starting on June 1, 2021, The Bull Report has been compensated $20,000 per month for coverage of BLBX by BlackBoxStocks, Inc. The Bull Report and its affiliates or officers have purchased 6885 common shares of BLBX in the open market after initiating coverage on this security on June 1, 2021. The Bull Report and its affiliates or officers may purchase, hold, and sell shares of common stock of this stock, in the open market at any time without notice. The Bull Report will not update its purchases and sales of this stock in any future postings on The Bull Report’s websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words “may”, “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” ” project,” and similar expressions and variations thereof are intended to identify forward-looking statements. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *The Bull Report does not set price targets on securities. Never invest in a stock discussed on this website or in this email alert unless you can afford to lose your entire investment.
Additionally, The Bull Report has been compensated $152,500 for coverage of BLBX in November 2021, by BlackBoxStocks, Inc.
Additionally, The Bull Report has been compensated $75,000 for coverage of BLBX in December 2021, by BlackBoxStocks, Inc.
Additionally, The Bull Report has been compensated $75,000 for coverage of BLBX in January 2022, by BlackBoxStocks, Inc.
Additionally, The Bull Report has been compensated $5,000 for coverage of BLBX in February 2022, by BlackBoxStocks, Inc.
Additionally, The Bull Report has been compensated $35,000 for coverage of BLBX in April 2022, by BlackBoxStocks, Inc.
Additionally, The Bull Report has been compensated $35,000 for coverage of BLBX in May 2022, by BlackBoxStocks, Inc.
Additionally, The Bull Report has been compensated $5,000 for coverage of BLBX in June 2022, by BlackBoxStocks, Inc.
Additionally, The Bull Report has been compensated $16,000 for coverage of BLBX in July 2022, by BlackBoxStocks, Inc.