$GFAI AI Stock & Short Squeeze Play
Presently, Guardforce AI CO, Limited (NASDAQ: GFAI) has two things going for it: the performance of its stock and its ability to evolve. GFAI has evolved from a corporation that mainly focused on cash logistics to a tech-savvy secure logistics pioneer. Its operations now include the installation and production of its Robot as a Service (RaaS), which monitors products, advertises, and provides useful data and services to clients. RaaS exemplifies GFAI’s metamorphosis into a robot producer operating in the service industry. GFAI stock, on the other hand, has become a short squeeze play due to building momentum, running more than 400% over the course of this month.
GFAI Fundamentals
Corporate development is not merely the usage of more advanced technology, but rather an overall alteration of function. GFAI has exemplified this, evolving from simple cash logistics to logistics network monitoring then to data analysis until arriving at its most recent robotics venture.
GFAI’s new trajectory presented a couple of challenges. The first is a shift from a service-oriented business into a business that mass produces products – robots. The second is GFAI entering the hospitality industry, which requires extensive knowledge of the industry.
Service Industry Robots
Last year GFAI acquired three Chinese robotics manufacturers and entered into a partnership with Bluepin – a Hong Kong-based software company that specializes in creating software for institutions within the service industry.
GFAI’s partnership with Bluepin provides GFAI with an insider’s view of the hospitality industry. The mutual agreement stipulates that Bluepin’s guest service robots will be integrated into GFAI’s T-Series concierge robots. Those robots would then be marketed by both corporations and sold to other entities within the service industry – mainly hotels.
The Chinese companies purchased by GFAI are Shenzhen Keweien, Guangzhou Kewei, and Beijing Wanjia. Shenzhen Keweien and Guangzhou Kewei are notable because they are located in China’s most populous province, Guangdong. Logistically, Guangdong’s position along the South China Sea eases robot exportation.
These acquisitions also provided GFAI with valuable assets that aid in its development and in building revenue. Through the acquisitions, GFAI acquired over a dozen robotics patents that are useful in developing its RaaS System. Additionally, robots deployed by these corporations can be used for advertisement purposes. As a result of acquiring these companies, GFAI has expanded its customer to now includes more Fortune 500 companies than before.
Overall, GFAI’s partnership with Bluepin conjointly with the industry specific insights from the three acquired companies provides GFAI with the insider knowledge vital to managing its newfound manufacturing power and distribution networks.
Having over the course of the last few years maneuvered itself into a position that suits its new business focus, GFAI has deployed more than 6,000 RaaS all over the world. These robots have been developed to service hotels, hospitals, government facilities, tourist sites, and other facilities. They operate on a centralized platform – the Intelligent Cloud Platform (ICP) – which allows GFAI to monitor its robots remotely and integrate solutions throughout the network. This distribution of information also provides GFAI with useful data which is then used by GFAI to further develop its services and features. Due to the rapid rate of its advancement in robotics GFAI increased its Robotics AI revenue by 253% in the first half of 2022. It also set up three main hubs in China, Hong Kong, and the United States during the same period. Each of these hubs is capable of managing over 10,000 robots.
GFAI Stock Short Squeeze
However, GFAI’s 400% run was not due to its success in the robotics industry. Rather, the sudden surge in GFAI stock value was largely due to a short squeeze play. GFAI’s 1 for 40 reverse split left behind a float of only 1.18 million shares, transforming the stock into a volatile micro-float and an appealing short squeeze candidate.
AI stocks experienced a drastic surge in popularity after the success of ChatGPT. But at the start of April, anti-AI sentiment, and presumably waning AI hype triggered a short selling attack on AI stocks. This shift in sentiment coupled with GFAI’s recent reverse split led to mounting short interest which AI investors tried to take advantage of by triggering a short squeeze.
GFAI’s recent online popularity could position it not only as an AI stock but as a meme stock as well. While all stocks contain a human element, what differentiates meme stocks is their resonance with public discourse and the popularity of AI technology could make GFAI stock one to watch this year.
Meanwhile, the short data for GFAI stock shows a decline in short interest which is currently at 15.7%. Additionally, trading volume has declined since the initial surge on April 3rd when volume reached 38 million shares. As of April 17th, trading volume was 1.5 million which is still higher than its historical volume. A new catalyst could help fuel the next leg up for GFAI, otherwise momentum will likely move towards new AI plays running in sympathy.
GFAI Financials
Over the six month period ending June 2022, GFAI grew its total assets from
41
million in December 2021 to $68 million – likely due to its series of acquisitions. GFAI’s total current liabilities also increased from $22.4 million to
30
million. As of June 2022, GFAI’s total liabilities were $39.4 million.
However, GFAI’s revenues have decreased from $18.4 million a year ago to $16.9 million in this six month period. This is definitely a bearish sign for the company but as it optimizes its operations in the robotics industry it may show improvement down the line.
Meanwhile, gross profit totaled $1.9 million and its operating loss totaled $5.5 million for this 6 month period. GFAI’s operating expenses increased notably from it’s $1.3 million loss during the same period in 2021. As a result, GFAI reported a net loss of $6.3 million – a substantial increase from its $1.5 million operating loss in the same year-ago period.
Technical Analysis
GFAI stock pulled back to its $21.61 support and is consolidating near $24.25. The stock has been trading in an upwards channel above the 50 and 200 MA, indicating that the trend is bullish.
As for the indicators, GFAI stock is currently testing its lower trendline after breaking through the 21 MA. The 50 and 200 MA recently had a golden cross – another bullish sign – meanwhile the RSI is neutral at 50 and the MACD is bearish but approaching a crossover.
Fundamentally, GFAI stock is currently one of the hot AI stocks to watch, however, without a strong upcoming catalyst, momentum could move towards other AI plays. If GFAI stock is able to hold this support level, then it could continue to trade in this channel.
If GFAI stock breaks the lower trendline and support, traders could take a short position considering the lower trading volume and the other AI stocks competing for momentum traders’ attention. Otherwise, investors may want to keep GFAI stock on their watchlists considering its low float of 1.18 million shares and the current popularity of AI stocks.
GFAI Forecast
GFAI made massive strides in 2022 and is eyeing greater success as it pursues a new business direction in the lucrative, diverse, and rapidly expanding robotics market. It’s projected that the robotics market will grow from $36.2 billion to $119.3 billion by 2030.
A combination of labor shortage, and escalating wages is likely to catalyze the incorporation of robots in the labor force. With companies like Amazon and Walmart incorporating robots into their warehouse systems, it appears that robots could become the world’s workforce sooner rather than later.
While service robots presently represent a small portion of the market, its sales are projected to surpass those of logistics robots. Therefore, GFAI’s shift from logistics to service is well timed considering the future outlook of the robotics market. But from a financial standpoint, GFAI is still suffering losses, which is to be expected when a company enters a new industry.
As for GFAI stock and its short squeeze potential, the only foreseeable catalyst for the stock is continuing AI hype. AI was the star of the last earnings season, with references to AI and related terms up 77% from the prior year’s earnings calls – a trend that could continue this earnings season as well. Investors may also see renewed enthusiasm for everything AI now that Elon Musk has founded X.AI – his new AI venture.
GFAI Fundamentals
Corporate development is not merely the usage of more advanced technology, but rather an overall alteration of function. GFAI has exemplified this, evolving from simple cash logistics to logistics network monitoring then to data analysis until arriving at its most recent robotics venture.
GFAI’s new trajectory presented a couple of challenges. The first is a shift from a service-oriented business into a business that mass produces products – robots. The second is GFAI entering the hospitality industry, which requires extensive knowledge of the industry.
Service Industry Robots
Last year GFAI acquired three Chinese robotics manufacturers and entered into a partnership with Bluepin – a Hong Kong-based software company that specializes in creating software for institutions within the service industry.
GFAI’s partnership with Bluepin provides GFAI with an insider’s view of the hospitality industry. The mutual agreement stipulates that Bluepin’s guest service robots will be integrated into GFAI’s T-Series concierge robots. Those robots would then be marketed by both corporations and sold to other entities within the service industry – mainly hotels.
The Chinese companies purchased by GFAI are Shenzhen Keweien, Guangzhou Kewei, and Beijing Wanjia. Shenzhen Keweien and Guangzhou Kewei are notable because they are located in China’s most populous province, Guangdong. Logistically, Guangdong’s position along the South China Sea eases robot exportation.
These acquisitions also provided GFAI with valuable assets that aid in its development and in building revenue. Through the acquisitions, GFAI acquired over a dozen robotics patents that are useful in developing its RaaS System. Additionally, robots deployed by these corporations can be used for advertisement purposes. As a result of acquiring these companies, GFAI has expanded its customer to now includes more Fortune 500 companies than before.
Overall, GFAI’s partnership with Bluepin conjointly with the industry specific insights from the three acquired companies provides GFAI with the insider knowledge vital to managing its newfound manufacturing power and distribution networks.
Having over the course of the last few years maneuvered itself into a position that suits its new business focus, GFAI has deployed more than 6,000 RaaS all over the world. These robots have been developed to service hotels, hospitals, government facilities, tourist sites, and other facilities. They operate on a centralized platform – the Intelligent Cloud Platform (ICP) – which allows GFAI to monitor its robots remotely and integrate solutions throughout the network. This distribution of information also provides GFAI with useful data which is then used by GFAI to further develop its services and features. Due to the rapid rate of its advancement in robotics GFAI increased its Robotics AI revenue by 253% in the first half of 2022. It also set up three main hubs in China, Hong Kong, and the United States during the same period. Each of these hubs is capable of managing over 10,000 robots.
GFAI Stock Short Squeeze
However, GFAI’s 400% run was not due to its success in the robotics industry. Rather, the sudden surge in GFAI stock value was largely due to a short squeeze play. GFAI’s 1 for 40 reverse split left behind a float of only 1.18 million shares, transforming the stock into a volatile micro-float and an appealing short squeeze candidate.
AI stocks experienced a drastic surge in popularity after the success of ChatGPT. But at the start of April, anti-AI sentiment, and presumably waning AI hype triggered a short selling attack on AI stocks. This shift in sentiment coupled with GFAI’s recent reverse split led to mounting short interest which AI investors tried to take advantage of by triggering a short squeeze.
GFAI’s recent online popularity could position it not only as an AI stock but as a meme stock as well. While all stocks contain a human element, what differentiates meme stocks is their resonance with public discourse and the popularity of AI technology could make GFAI stock one to watch this year.
Meanwhile, the short data for GFAI stock shows a decline in short interest which is currently at 15.7%. Additionally, trading volume has declined since the initial surge on April 3rd when volume reached 38 million shares. As of April 17th, trading volume was 1.5 million which is still higher than its historical volume. A new catalyst could help fuel the next leg up for GFAI, otherwise momentum will likely move towards new AI plays running in sympathy.
GFAI Financials
Over the six month period ending June 2022, GFAI grew its total assets from
41
million in December 2021 to $68 million – likely due to its series of acquisitions. GFAI’s total current liabilities also increased from $22.4 million to
30
million. As of June 2022, GFAI’s total liabilities were $39.4 million. However, GFAI’s revenues have decreased from $18.4 million a year ago to $16.9 million in this six month period. This is definitely a bearish sign for the company but as it optimizes its operations in the robotics industry it may show improvement down the line.
Meanwhile, gross profit totaled $1.9 million and its operating loss totaled $5.5 million for this 6 month period. GFAI’s operating expenses increased notably from it’s $1.3 million loss during the same period in 2021. As a result, GFAI reported a net loss of $6.3 million – a substantial increase from its $1.5 million operating loss in the same year-ago period.
Technical Analysis
GFAI stock pulled back to its $21.61 support and is consolidating near $24.25. The stock has been trading in an upwards channel above the 50 and 200 MA, indicating that the trend is bullish.
As for the indicators, GFAI stock is currently testing its lower trendline after breaking through the 21 MA. The 50 and 200 MA recently had a golden cross – another bullish sign – meanwhile the RSI is neutral at 50 and the MACD is bearish but approaching a crossover.
Fundamentally, GFAI stock is currently one of the hot AI stocks to watch, however, without a strong upcoming catalyst, momentum could move towards other AI plays. If GFAI stock is able to hold this support level, then it could continue to trade in this channel.
If GFAI stock breaks the lower trendline and support, traders could take a short position considering the lower trading volume and the other AI stocks competing for momentum traders’ attention. Otherwise, investors may want to keep GFAI stock on their watchlists considering its low float of 1.18 million shares and the current popularity of AI stocks.
GFAI Forecast
GFAI made massive strides in 2022 and is eyeing greater success as it pursues a new business direction in the lucrative, diverse, and rapidly expanding robotics market. It’s projected that the robotics market will grow from $36.2 billion to $119.3 billion by 2030.
A combination of labor shortage, and escalating wages is likely to catalyze the incorporation of robots in the labor force. With companies like Amazon and Walmart incorporating robots into their warehouse systems, it appears that robots could become the world’s workforce sooner rather than later.
While service robots presently represent a small portion of the market, its sales are projected to surpass those of logistics robots. Therefore, GFAI’s shift from logistics to service is well timed considering the future outlook of the robotics market. But from a financial standpoint, GFAI is still suffering losses, which is to be expected when a company enters a new industry.
As for GFAI stock and its short squeeze potential, the only foreseeable catalyst for the stock is continuing AI hype. AI was the star of the last earnings season, with references to AI and related terms up 77% from the prior year’s earnings calls – a trend that could continue this earnings season as well. Investors may also see renewed enthusiasm for everything AI now that Elon Musk has founded X.AI – his new AI venture.