Earnings Alpha
#1 ticker that hit my radar this week!
(Nasdaq: GIFT)
Hey everyone,
Last week I was talking with someone and somehow we ended up in the middle of the classic GIF vs. JIF debate.
You know the one.
At some point they tried making their case by bringing up the word gift, saying, “Well nobody calls that jift.”
Fair enough.
But their opinion is still wrong… and the creator would agree with me.
So when I came across a ticker called GIFT while going through charts this week, that conversation immediately came back to mind.
Before getting into that one though, let’s quickly circle back to something we talked about last week.
Last week wasn’t exactly the kind of environment where markets were looking to boom. Between everything going on overseas and the overall tone across the market, most of them spent much of the week in the red.
Even with that, GANX still managed to move.
The ticker ended the week with over a 21% push on the final trading day, clearing the $2.79 level we talked about and briefly trading above $3, reaching $3.05 to close out the session.
That move also had about 1.5 million shares trading behind it, which is the kind of participation you want to see when a ticker pushes through a level like that.
Right now, I’m still watching $2.79 as the most recent area to pay attention to. If price pulls back and holds around there, that suggests the move still has some structure behind it.
Below that, the $2.36 area is still the bigger support level on my chart.
So I’ll be watching to see how participation develops this week and whether there’s any follow-through.
Anyway, let’s get back to the ticker I mentioned earlier.
GIFT.
Giftify operates in the digital promotions and loyalty space. Their platform helps restaurants, entertainment venues, and local businesses run things like digital gift cards, promotional offers, and customer loyalty programs.
The idea is pretty simple. Businesses want customers to come back, and tools like promotions and digital gift cards help make that happen.
The company also recently shared an update discussing some of the tools they’ve been building around digital promotions and customer engagement, which gives a little more insight into how they’re positioning the platform for businesses looking to attract repeat customers.
When you think about the type of businesses they work with, the broader environment starts to matter a bit as well.
A few years ago, when things were reopening after COVID, restaurants and venues were seeing traffic return and businesses were looking for ways to bring customers back.
If you zoom out and look at the chart as a whole, that period lines up pretty closely with the run the ticker had a couple of years ago when it moved from under a $1 to well over $4.
Fast forward to today and the environment looks a little different. Consumer spending has cooled off in some areas and unemployment has started creeping higher again.
When people feel uncertain about spending, things like dining out or entertainment tend to slow down first.
Since many of the businesses Giftify works with rely on customer traffic, a slower spending environment can naturally make things quieter for platforms built around promotions and gift cards.
Now whether that actually explains the move or not is hard to say.
And I’ll be honest, when you pull up the chart it’s not exactly the prettiest thing you’ll see. But that’s also what caught my attention in the first place.
For the better part of the past six months, it’s mostly been trading between roughly $0.95 and $1.20.
Now that the ticker is sitting around $0.79, the first level I’ll be paying attention to is $0.85. That’s the area I’d want to see cleared before anything else really starts to matter.
Volume has also been fairly quiet. The ticker averages roughly 50,000 shares per day, and the most recent session only saw around 10,500 shares trade, so participation is still on the lighter side.
And looking back at the earlier move toward the $4 area, the volume during that stretch doesn’t appear dramatically different either, which suggests it didn’t necessarily take massive participation to push the ticker higher at the time.
The float sits at about 18 million shares, which is relatively small. That doesn’t guarantee anything, but it does mean the ticker can move if participation starts to build.
For now, the volume just isn’t there yet.
If it can work its way back above $0.85, the next area I’d be watching would be around $0.95, since that’s where that previous range starts to come back into play.
From there, that window runs up toward $1.20.
Beyond that point the chart doesn’t give a whole lot to go off right now, so for the moment the focus is simply on whether the ticker can reclaim those first levels.
If you want to dig deeper, take some time to look through the company’s website, investor materials, and recent announcements to get a better understanding of what they’re building.
As always, please do your own research and make sure any position fits your risk tolerance. This is for informational purposes only, not investment advice, and nothing is guaranteed.
If this one ends up being a GIFT worth opening, I’ll make sure to bring it up again in the coming emails.
Stay sharp out there,
Brandon Parks.
Disclaimer: The information in this communication is for informational and educational purposes only and does not constitute financial, legal, or tax advice. I am not a licensed financial advisor. The views, ideas, and any security mentions expressed are my personal opinions, are subject to change, and are not a recommendation to buy or sell. No warranty is made regarding the accuracy or completeness of this information. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. You should consult a qualified financial professional to determine the suitability of any investment for your specific situation and always conduct your own due diligence. Neither I nor Earnings Alpha shall be held liable for any losses or damages arising from any action taken based on this content. We do not currently hold positions in the securities mentioned above.