Connect with us

Hi, what are you looking for?

Oracle of  Omaha Says – Investing and Stock NewsOracle of  Omaha Says – Investing and Stock News

Editor's Pick

Troika Media Group stock: is TRKA a good bargain or a value trap?

Troika Media Group (NASDAQ: TRKA) stock price has been in a deep sell-off in the past few months and is now trading at the lowest point since March 24. It has plunged by more than 82% from the highest point this year. Even so, data compiled by Yahoo Finance shows that the shares are up by more than 51% this year.

Is Troika Media Group a good investment?

Troika Media Group has become one of the most popular meme stocks this year. The shares are constantly in the most active tab of StockTwits, a social media platform for traders. It is also highly popular among Reddit traders

Its Yahoo Finance conversations has over 22,000 comments, which is high for a penny stock valued at about $61 million. One reason for the recent sell-off is the increased dilution of the company. Data compiled by SeekingAlpha shows that the number of outstanding shares rose from 15 million in December 2021 to over 80 million.

Most recently, the outstanding shares jumped after a creditor decided to exercise warrants to buy hundreds of millions of additional shares. Dilution is often seen as one of the biggest risks in the stock market since it devalues existing shareholders.

Another likely reason why the Troika Media Group stock has become popular is its growing revenue. Annual revenue jumped to $116 million in 2022 from the previous $16.2 million. This happened because of the decision by the company to acquire Converge. The net loss jumped to $38 million,

The next key catalyst for the TRKA stock price will be the company’s earnings that are scheduled for May 23rd. While Troika is a risky company, there is a likelihood that it will see increased market activity ahead of this date. We can’t also rule out a potential short-squeeze before and after the report.

Troika Media stock forecast

TRKA share price has crashed below $0.20, making it cheap on face value. The shares have moved below all moving averages and have moved below the key support at $0.20. They remain below the 50-day moving average while the RSI is nearing the oversold level. It is also nearing the key support level at $0.17, the lowest point in March this year. 

Therefore, while the overall trend is bearish, a short squeeze can’t be ruled out. As such, I recommend against shorting the company for now. In the long term, I suspect that the shares will continue falling, with the next target being at $0.093 (December low).

The post Troika Media Group stock: is TRKA a good bargain or a value trap? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Everynet, one of the world’s largest network operators for national LoRaWAN® networks, announces it is working with Amazon Web Services (AWS) to offer long-range...


    As more candidates throw their hats into the 2024 Presidential ring, I’d like to offer a proposal that should have immediate bipartisan support: stop...

    Editor's Pick

    The Internet of Things (IoT) is changing the way we interact with technology, and it has the potential to revolutionize the way we manage...

    Editor's Pick

    Semtech Corporation and esteemed engineering design services firm, Connected Development, today announced the launch of the new XCVR Development Board and Reference Design integrating...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023