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TL:DR. Bandwidth is drastically undervalued compared to other tech on the market, when comparing the revenue growth. They are value the same as they were pre-pandemic, but have since acquired a company to go global, and revenues have grown about 100% since back then. short interest is 17%, it is low float and low volume. a turn around could blast this company to space, just like it did at the start of the pandemic, when it ran from high $70s to $196🚀 🚀🚀 🚀
Alright you nerds, let's talk about a little known company called Bandwidth Inc. ($BAND), and one of the most undervalued tech plays on the market.
Who they are and what they do :
Bandwidth is a CPaaS company, Communications Platform as a Service. They are a B2B company that provide APIs to enterprise customers, that allow them to integrate phone calls and text messaging into software and apps. Ever call into a Zoom, Microsoft Teams, or WebEx meeting on your phone? That is Bandwidth. Ever make a call through Google Voice? That is Bandwidth. Basically any apps or software that have native calling or texting built into will use Bandwidth or a competitor like Twilio.
Some other examples of how the products and services work:
Let's look at some bullish shit going on with them:
Let's look at the huge growth over the past 3 quarters:
Fourth quarter total revenue of $113.0 million, up 82% year-over-year
First quarter total revenue of $113.5 million, up 66% year-over-year
Second quarter total revenue of $120.7 million, up 57% year-over-year
Some technical info:
Band is sitting at the lower bound of a multi-year trend, after having huge growth over the past year and a half, and expanding internationally. It is sitting at a fairly oversold level on the RSI, and right at a huge column support area. It stands to reason that we will see a bounce up from here, at least to the next supply zone in the $115-120, but could trend back up as high as the upper trend line in the $160-170 area. 🚀 🚀🚀 🚀
Short interest is also sitting at 17%. Not a huge amount, but with such low float and low volume, this bad boy can easily be blown sky high.
So why id BAND valued so low? My theories are that:
Positions: Currently 1150 shares. Options could be played, but the volume is low, so spreads are a bit wide. Also, it is hard to say how long a it will take for the market to realize it is missing out. Selling puts is probably free money. OTM Leaps or debit spreads could work.
Edit. Forgot to mention that earnings are at the end of the day today. This could be where the big uppies get underway.