What should I pick up Nextnav (USA Stocks:NN) or Nextplay (USA Stocks:NXTP)?

In the world of technology stocks, not all players are created equal. This is particularly true when comparing Nextnav (USA Stocks: NN) and Nextplay Technologies (USA Stocks: NXTP). While both companies operate within the same industry, their financial health and growth prospects paint two very different pictures. Nextplay Technologies, a media service provider within the technology sector, has been grappling with a net income loss of $40.4M, a high probability of bankruptcy at 94.86%, and a total debt of $13.17M. Despite a quarterly revenue growth of 49.5%, the company's current valuation stands at a modest $10.78M, with a book value per share of 6.92X. On the other hand, Nextnav's financials and performance metrics are yet to be discussed. This comparative investment analysis will delve deeper into these two companies, providing investors with a clearer perspective on where to place their bets. Many prudent traders are steering clear of the media sector, making it worthwhile to delve deeper into Nextplay Technologies and compare it with similar entities like Nextnav Acquisition. We will explore the competitive dynamics between Nextplay and Nextnav.
Published over six months ago
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Reviewed by Michael Smolkin

While Nextplay Technologies (USA Stocks: NXTP) shows promise with a gross profit of 5.9M and a book value per share of 6.92X, investors should be wary of the company's high probability of bankruptcy at 94.86% and its significant net income loss of 40.4M from continuing operations. The company's current valuation stands at 10.78M, but with a market capitalization of only 6.7M, it's essential to carefully weigh the risks and rewards before investing.

Key Takeaways

By comparing basic indicators between Nextplay Technologies and Nextnav, we can assess the impact of market volatility on both companies' prices and determine if combining them in a portfolio can mitigate market risk. Pair trading strategies can also be employed, such as matching a long position in Nextnav with a short position in Nextplay Technologies. For more details, refer to our pair correlation module. Let's examine the assets. The asset utilization indicator measures the revenue generated for every dollar of assets a company reports. Nextplay Technologies has an asset utilization ratio of 8.22 percent, meaning the company generates $0.0822 for each dollar of assets. An increasing asset utilization ratio indicates that Nextplay Technologies is becoming more efficient in using its assets for daily operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Nextplay Technologies. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its performance over time. Several factors influence the investment perspective on Nextplay Technologies, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.

Watch out for price decline

Please consider monitoring Nextplay Technologies on a daily basis if you are holding a position in it. Nextplay Technologies is trading at a penny-stock level, and the possibility of delisting is much higher compared to other otcs. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Nextplay Technologies stock to be traded above the $1 level to remain listed. If Nextplay Technologies otc stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Nextplay Technologies's Liquidity

Nextplay Technologies financial leverage refers to using borrowed capital as a funding source to finance Nextplay Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nextplay Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Nextplay Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Nextplay Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Nextplay Technologies's total debt and its cash.

Detailed Perspective On Nextplay Technologies

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Nextplay Technologies revenue. Based on the latest financial disclosure, Nextplay Technologies reported 8.2 M of revenue. This is 99.8% lower than that of the Media sector and significantly higher than that of the Communication Services industry.
The revenue for all United States stocks is 99.91% higher than that of Nextplay Technologies. As for Nextnav Acquisition we see revenue of 3.93 M, which is much higher than that of the Communication Services
Nextplay8.2 Million
Sector0.0
Nextnav3.93 Million
8.2 M
Nextplay
Sector
3.9 M
Nextnav
Every cloud has a silver lining, and in the case of Nextplay Technologies (NXTP), the silver lining is its potential upside of 53.66. Despite a net income loss of $38M and an operating income loss of $20.7M, the company has shown promising signs of growth with a quarterly revenue growth of 49.5%. With a book value per share of 6.92X and a market capitalization of $6.69M, NXTP's shares are currently undervalued, providing an attractive entry point for investors. However, the high beta of 2.78 indicates a higher risk associated with the stock, which is further confirmed by the high downside deviation of 10.46. Therefore, investors should be prepared for potential volatility when investing in NXTP. .

Over 3 percent fall for Nextplay Technologies. What does it mean for retail investors?

Nextplay Technologies' Information Ratio (IR) has fallen to 0.11, reflecting a more than 3% drop in the stock price. This lower IR suggests lower returns for the risk assumed, indicating that the company has struggled to deliver adequate returns despite inherent risks. As such, retail investors should approach Nextplay Technologies with caution due to signs of potential underperformance. The company's returns have shown significant volatility over the selected time frame, suggesting further investigation is necessary to align market timing strategies with implied risk expectations. As a potential penny stock, Nextplay Technologies may carry added risk. While it may present investment opportunities, many penny stocks are speculative and subject to artificial price hype. Therefore, investors should understand the upside potential and downside risk fully, and be aware of signals such as unreported promotions or sudden news releases.
Despite the potential to profit from this instrument with precise timing, remember that artificially hyped penny stocks often fail to sustain their increased share price. Long-term shareholder value can only be enhanced through solid performance backed by strong fundamentals. Despite Nextplay Technologies' recent slump of over 3 percent, there are several factors that suggest potential upside for the stock. The analyst target price estimated value is a whopping $20, significantly higher than the current valuation market value of $1.08. This indicates a potential upside price of $32.69, with a single analyst strongly recommending a buy. The company's valuation real value stands at $5.8, which is notably higher than the current market value, indicating the stock may be undervalued. However, investors should be aware of the possible downside price of $0.0108. Despite the recent downturn, Nextplay Technologies' stock still holds promising potential for investors willing to weather short-term volatility. .

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Nextplay Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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