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Why is Embark Technology (EMBK) stock up 80% today?

Source: Mike Marlene / Shutterstock

embark on technology (Nasdaq:EMBKMore) is trending on Friday as the stock price surges on Friday. The all-time high EMBK stock rose almost 126% in the session. At the last check, the share is up about 86%.

So what makes this crazy move higher? Revenue.

The company reported second-quarter results after the close of trading on August 11, losing 3 cents per share. Despite the final loss, the company beat expectations by 10 cents a share. However, management has also issued new guidance on free cash flow spending, which investors welcome.

The company has lowered its full-year free cash flow expenditure guidance to a range from $140 million to $100 million to $115 million, down from its previous forecast of $125 million. That said, management also lowered its stock-based compensation guidance from $70 million to $75 million to $60 million to $65 million.

Commenting on these new prospects, the company said:

“Our revised 2022 cash flow spending guidance reflects process improvements and expands our operational runway. We are well on our way to commercialization.”

Do you have EMBK in stock?

For those investors who don’t know, “Embark is America’s longest-running self-driving truck program.” “By dedicating ourselves to the software and related services that power autonomous trucks, Embark will offer transformative operational savings and collaboration with carriers, truck manufacturers and Tier 1 suppliers, rather than competing with them,” he added. increase.”

Today’s surge of over 80% occurs at huge volume with over 150 million shares traded. The previous record of 26.8 million shares occurred earlier this month. The surge sent EMBK stock above his $1 for the first time since June 9.

The fact that management expects better free cash flow spending and is cutting expenses is a big plus for Embark. This is especially true as the EMBK stock is down more than 96% from peak to trough.

problem? Embark has not yet generated any revenue. For stocks to find sustainable upward momentum, it needs to change. But with over $220 million in cash and short-term investments and a market cap of around $500 million, this may be the news investors need to hear. Now, it’s all about delivering on those promises.

Unfortunately for EMBK stocks, all this is happening during a bear market. In hard times, there is little love for businesses without profits, especially those without revenue. Let’s see if anything changes in this earnings report.

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As of the date of publication, Bret Kenwell did not have any positions (directly or indirectly) in the securities referenced in this article. The opinions expressed in this article are those of the author, subject to the Publishing Guidelines.