Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 6 Jan, 25 | GXAI | Speculative Buy | USD 2.92 | USD 3.18 | USD 3.42 | 7 days | 17.1% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Gaxos.ai Inc. engages in developing artificial intelligence applications for various sectors. Its portfolio includes applications in mental and physical wellbeing, coaching, and gaming. In addition, it offers Gaxos, a gaming platform develop, design, acquire, and manage conventional games and combine these games with unconventional game mechanisms. The company was formerly known as The NFT Gaming Company, Inc. and changed its name to Gaxos.ai Inc. in January 2024. Gaxos.ai Inc. was incorporated in 2021 and is based in Roseland, New Jersey.
Operating Loss Decrease (Year-to-Date): The loss from operations decreased by $380,338 (11.9%) for the nine months ended September 30, 2024, compared to the same period in 2023, showing improvement in managing expenses.
Revenue Growth: The company generated revenues of $2,723 for the nine months ended September 30, 2024, compared to no revenue during the same period in 2023, demonstrating progress in monetizing its offerings.
Operating Loss Increase (Quarterly): The loss from operations increased by $32,253 (3.7%) for the three months ended September 30, 2024, compared to the same period in 2023.
Compensation and Related Benefits Decrease (9-Months): A significant 42.6% drop in compensation and related benefits ($512,634), primarily due to reduced stock-based compensation, indicating potential challenges in employee incentives or executive retention
Key investment risks for Gaxos.ai include reliance on successful AI application development, competition in the rapidly evolving AI sector, potential regulatory challenges, and dependence on capital raises, such as recent offerings, to sustain operations and growth.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 2.92 | 2.54 | 3.18 | 3.42 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Gaxos.ai Announces $4 Million Direct Offering and Private Placement: Gaxos.ai Inc. (Nasdaq: GXAI) has entered agreements for a $4 million registered direct offering and a concurrent private placement. The offering includes 1,346,669 shares of common stock at $3.00 per share and unregistered warrants for an equal number of shares at the same price, expiring in three years. H.C. Wainwright & Co. is the exclusive placement agent. Proceeds will support working capital and corporate purposes, with shares registered under an SEC Form S-3 filing.
Gaxos.ai Integrates Meshy 4 into Gaxos Labs for Enhanced 3D Modeling: Gaxos.ai announced the integration of Meshy 4 into its AI-driven platform, Gaxos Labs, benefiting game developers and publishers. The update introduces dynamic mesh topology for quad- or triangle-based structures, polycount limitation for efficient asset performance, and improved geometry quality for polished 3D models. These features accelerate workflows, enabling creators to produce high-quality assets with tailored detail and optimized performance. CEO Vadim Mats highlighted the update’s role in enhancing professional-quality 3D asset creation.
Gaxos.ai Integrates Recraft AI into Gaxos Labs: Gaxos.ai announced the integration of Recraft AI into its Gaxos Labs platform, enhancing its suite of tools for game developers and publishers. The addition aims to simplify the labor-intensive game development process, aligning with the company's vision of providing an all-in-one AI solution. CEO Vadim Mats emphasized the importance of such tools in streamlining workflows and advancing Gaxos Labs as a comprehensive resource for the gaming industry.
Gaxos.ai Announces $5 Million Direct Offering and Private Placement: Gaxos.ai Inc. (Nasdaq: GXAI) has entered agreements for a $5 million registered direct offering and a concurrent private placement. The offering includes 1,449,277 shares of common stock at $3.45 per share and unregistered warrants for an equal number of shares at $3.32 per share, expiring in three years. H.C. Wainwright & Co. is the exclusive placement agent. Proceeds will support working capital and corporate purposes, with the closing expected on December 20, 2024.
Technical Commentary:
The chart for Gaxos.ai Inc. (Nasdaq: GXAI) shows a notable upward movement in recent days, with the stock gaining 10.61% to close at $2.92. The 21-day moving average (MA) at $3.04 is above the 50-day MA at $2.06, indicating bullish momentum in the short term. The RSI is at 52.99, suggesting the stock is in a neutral zone with no overbought or oversold signals. Volume spikes in December indicate increased interest, possibly due to recent company announcements.
Considering recent key business, financial updates, current trading levels, and key business risks, and technical indicators analysis, a ‘Speculative Buy’ recommendation has been given on the Gaxos.ai Inc (NASDAQ: GXAI) at the closing price of USD 2.92, as on January 03, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Communication Services Industry: Electronic Gaming & Multimedia
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| GXAI Gaxos.ai Inc |
0.08 6.98% | 1.29 | - | - | 50352.36 | 2.06 | 2350.77 | -0.7002 |
| NETTF NetEase Inc |
- -% | 21.34 | 15.30 | 13.61 | 0.66 | 3.89 | 0.52 | 1.86 |
| NTES NetEase Inc |
2.96 2.88% | 105.88 | 13.81 | 12.32 | 0.60 | 3.46 | 0.46 | 1.54 |
| NTDOY Nintendo Co ADR |
-0.02 0.12% | 17.15 | 16.90 | 23.81 | 0.03 | 3.25 | 0.02 | 0.06 |
| NTDOF Nintendo Co. Ltd |
- -% | 68.70 | 16.96 | 24.04 | 0.03 | 3.28 | 0.02 | 0.06 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 03, 2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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