Potential Breakout Brewing in Banzai [NSDQ: BNZI]
An overlooked micro-float NASDAQ stock could be headed for a rebound after a long “bottoming out” phase that appears to be approaching its potential conclusion.
Prices are currently hovering just above the stock’s 52-week low, and it’s been exhibiting strong price support at this level for several weeks.
However, its upcoming earnings report has the potential to be a rally catalyst, and a recent string of acquisitions could potentially indicate big announcements coming down the pipeline.
This scenario is playing out in the up-and-coming SaaS stock called Banzai [BNZI], and now could be an excellent time to start doing your research. Here’s why:
About the Company
Banzai is a micro-float stock with a lean-and-mean market cap of just $8.97 million, and it boasts a minimal float of just 6.2 million shares.
Founded in 2015 in Washing state, U.S.A., The company offers several marketing-related solutions as SaaS products that are available worldwide.
Its flagship product is called Demio, a web-based webinar platform designed to help businesses engage with their audience through live events and on-demand video content. This tool could have particularly strong growth potential, given the growing importance of video engagement in the online business landscape.
It also offers Boost, another SaaS product for sharing event registrations, and Reach, a tool designed to drive registrations and attendance for events.
According to its company profile, Banzai services clients in the healthcare, financial services, eCommerce, technology, media, and other fast-moving industries.
Recent Performance
Although Banzai shares have suffered declines over the past few weeks, the company has performed relatively well in its latest earnings report.
In Q3 2024, Banzai beat the consensus EPS estimate by a whopping $1.82 per share.
According to the latest-available consensus estimates for Q4 2024, analysts believe the company may have slashed its operating loss to just $(0.16) per share in the final quarter of last year.
Given its recent earnings beat, it seems possible that the company may have potentially achieved a surprise profit in Q4 2024.
If this turns out to be the case, it could provide a major rally catalyst for BNZI once the results hit the market.
Shopping Spree
Banzai was very busy in December. The company announced two significant acquisitions that could provide a substantial boost to their revenues in 2025.
On Dec. 10th, 2024, Banzai announced a definitive agreement to acquire digital video creation platform OpenReel in a deal that grew its TTM revenue by 152% to $10.9 million.
Lee Firestone, CEO and co-founder of OpenReel said the following of the deal, “With Banzai’s support, we’re confident in accelerating the growth of our technology while becoming an integral part of their robust suite of marketing tools. We believe that OpenReel is the perfect complement to Demio, enabling seamless cross-collaboration and enhancing the value we deliver to marketers worldwide.”
According to Banzai’s press release, they have big plans for their new acquisition:
“Banzai’s vision is to build an AI-powered marketing technology platform to help businesses of all sizes grow. Acquiring mission-critical MarTech products like OpenReel will allow Banzai to drive customer growth by offering new solutions to existing customers to create long-term value for our shareholders.”
This acquisition is extremely notable in its own right, but Banzai had another big move up its sleeve for December.
Days later on Dec. 20th, 2024, Banzai announced another deal to acquire Vidello, described as a “technology provider of video hosting and marketing suite solutions for businesses,” in a deal that grew its TTM revenue 59% to $17.3 million and added $2.3 million to EBITDA.
Banzai Founder and CEO Joe Davy said of the deal, ““We’re doubling down on building the best suite of video products by adding Vidello. We believe that Vidello has created the best product in the world for making amazing 3D videos.”
Mr. Davy also stated his belief that “Video content is the future of marketing across every platform. Vidello’s products make it significantly easier to create stunning, attention-grabbing video content without any technical expertise.”
With two big acquisitions within a couple of weeks of one and other, it appears that Banzai is planning on making big moves to expand its operations in 2025 and beyond.
Potential Rebound Signals
BNZI appears to be in a capitulation phase after a long stretch of sideways trading action, with prices hovering just above their 52-week lows.
However, recent spikes in buying volume could indicate the market is starting to see value & opportunity in this overlooked stock.
Short interest has also increased to 6.16% as of December 31st, 2024, and it could increase the possibility of a minor short squeeze unfolding when prices pivot higher, especially with BNZI’s small float of just 6.2 million shares.
Recently, there have even been signs of a potential double bottom occurring in BNZI. This pattern is a strong signal that a potential rebound could be brewing.
AND this pattern is coinciding with a bullish crossing signal on MACD, which could indicate an even greater chance of a potential turnaround coming down the pipeline.
Banzai also has a special meeting of shareholders on the calendar for February that could provide an avenue for another catalyst if the company makes any major announcements.
Plus, its Q4 2024 earnings report is coming soon, and the company posted a beat on its previous report.
Combined, the technical signals and potential catalysts make a compelling case for a potential rebound rally in the coming weeks.
Conclusion
BNZI’s chart is exhibiting multiple potentially bullish chart signals, and the company has two big events coming up that could provide catalysts for a potential rally in share prices.
If it can top expectations on its upcoming earnings report, it could give BNZI a significant momentum boost, and, if it can really shock the market by posting a surprise profit, it has an even better chance at breaking out.
Given its recent acquisitions, the company appears to be planning for a significant expansion in 2025, and more information about its intentions could come out at the special meeting of shareholders in February.
Although the fundamental and technical signals are beginning to add up, prices remain at some of the lowest levels we’ve seen over the past 52 weeks.