Blackboxstocks Inc. (NASDAQ: BLBX) stock investors are happy. Since March, they have seen shares soar by more than 219%. And on an intraday basis over that same period, gains have been even higher. Considering that broader markets, no matter the sector, have been decidedly bearish for the past two months, the rally is a testament to how strong $BLBX is on an intrinsic basis. There’s better news, though, the rally is highly likely to continue.
That’s because while the BLBX bull run is supported by significant strengthening in fundamentals, the inherent value from recently announced working partnerships doesn’t look to be appropriately factored into the current share price. And with investors now recognizing the disconnect, BLBX stock could move appreciably higher. In fact, after breaching its $5.00 November 2021 IPO price last week, all-time highs of $8.00 a share are back in the crosshairs.
And that level could be touched sooner than later after BLBX announced on Mondaythat it has completed its platform integration with E*TRADE Inc., allowing Blackbox users with E*TRADE accounts to trade stocks and options in those accounts without ever leaving the Blackbox platform. The deal is a win-win for the companies and their users. And for investors, it can be similarly rewarding.
A Trifecta Of Industry-Best Integrations
Keep in mind, integration with E*Trade comes on the heels of a working relationship with TradeStation, another retail-trader-focused behemoth that integrated services with BLBX in 2020. That deal also put the power of Blackbox’s Quick-Click feature at the fingertips of platform users, enabling them to load proprietary automated alerts for options contracts for execution through a simple two-click process. But more than simplifying the trading process, both software integrations level the options trading landscape for retail traders, enabling them to take advantage of trading strategies once available only to Wall Street elite and seasoned institutional traders.
Those deals aren’t the only ones driving near and long-term value. Last week, BLBX announced plans to enter into a joint venture with CoinRoutes to provide retail traders with proprietary analytics and a more efficient order routing system for the cryptocurrency markets. Like its other deals, it, too, intends to level the playing field for retail traders by providing tools that are often only accessible to large financial instituions. Moreover, it makes an already excellent platform better.
So, if there is doubt that BLBX is not in a state of hyper-growth, it can be put to rest. Having working relationships with three of the most successful names in the financial sector puts BLBX in its best operating position ever and should help drive revenues exponentially higher.
And keep in mind, revenue growth is already setting records. Moreover, with over $10 million in cash at the end of Q4, that trend is expected to continue. In fact, BLBX has guided that’s the case, and for good reasons.
Joint Venture with CoinRoutes
Investors may understand the value inherent to the TradeStation and E*Trade integrations. But they shouldn’t underestimate the impact of the CoinRoutes relationship that will provide retail traders enhanced order routing and trading execution platform for the fragmented cryptocurrency markets. It’s a timely, accretive extension of the BLBX platform and likely to add considerable revenue-generating firepower.
CoinRoutes is an innovator name in the crypto space and, since its launch in 2017, and has provided best-in-class order execution and blazing fast aggregated crypto market data to its institutional clients who trade thousands of different coins and crypto derivative products. The likely impact on BLBX growth can’t be underappreciated, noting that CoinRoutes currently provides an Execution Management System that consolidates market data to offer algorithmic trading for over a thousand spot and derivative instruments on over 50 major exchanges and liquidity providers.
Not only that, 45 financial institutions that trade over $7 billion in monthly volume use CoinRoutes because they make more money trading crypto with its unique technology. Factor in CoinRoutes’ patent-pending distributed architecture allowing clients to keep control over their digital wallets and keys; it’s a joint-venture deal that could deliver significant near and long-term rewards to BLBX investors and help expand the CoinRoutes network exponentially.
For BLBX, it’s another natural fit that combines the power of BlackBoxStocks’ innovative and industry-best social platform with CoinRoutes’ proprietary crypto algorithms to help users profit from the incredible opportunities in cryptocurrencies. Better said, it’s a relationship that rounds out an already comprehensive Blackbox platform.
And the better news is that results from BLBX’s efforts and intentions are paying off.
Record-Setting Growth Expected To Continue
That’s shown by BLBX’s posting best-ever Q4 and year-end 2021 results. And those results were more than impressive; they were exceptional. Total Q4 revenue surged by 62% on a comparative basis, reaching a best-ever $1,687,237. And for the year, BLBX posted an 82% increase in YoY revenues, another record-setting performance that delivered $6,112,324. Margin growth was impressive as well.
Gross margins in Q4 dollar terms surged by 105% to$1,110,834 compared to $542,538 in the fourth quarter of 2020. Better still, gross margin for all of 2021 delivered $4,260,969, an increase of 97%, compared to $2,166,243 scored in 2020. Margin expansion could be better this year, adding to an impressive 69.7% posted at the end of last year. The BLBX balance sheet is also at best-ever levels.
BLBX ended 2021 with cash and marketable securities totaling $10,442,379, compared to $972,825 at Y/E 2020. That 974% increase included proceeds from its initial public offering in November 2021. Thus, betting against BLBX may not be the most prudent course of action, especially when management is as bullish as investors.
Don’t forget this important fact that could enhance BLBX stock’s bullish momentum. In January, Blackboxstocks announced a share buyback program. Keep in mind that BLBX had only about 7.6 million shares in the float from its 13.19 million outstanding at the announcement. Thus, utilizing up to $2.5 million to buy back shares may do more than tighten an already small float; it could impact turning EPS sooner than later.
An update on that program is likely to come with Q1 earnings. And it could be a catalyst to strengthen the rally in progress.
The Bulls Are Running, And Likely To Soon Stampede
Finally, when it comes to a bottom-line analysis, the one for BLBX is explained relatively simply. The company is doing the right things, making the right deals, and is in the right markets, all at the right time. Remember, a platform like Blackboxstocks can make investors money regardless of market direction. Thus, it remains a revenue-generating machine despite the changing sentiments.
So, while BLBX stock itself may sometimes trade in sympathy with broader market conditions, undoubtedly, the path of least resistance based on a sum of its parts is to the appreciable upside. Potentially massive revenue-generating working relationships with industry best companies, highest-ever user growth, record-setting revenues, and a $2.5 million share buyback justify that bullish presumption.
But perhaps the best news is that new milestones reached in Q1 and thus far in Q2 could have a profound and positive impact on revenues this year. And it’s that forward-looking expectation that makes the BLBX investment proposition more than attractive; it makes it too good to ignore.
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