What’s happening with the CXApp (CXAI) stock?

on Feb 28, 2024
  • CXApp share price surged hard in a high-volume environment on Tuesday.
  • The surge is mostly because of the ongoing demand for AI companies.
  • Other notable gainers recently were SoundHound and BigBear AI.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

The CXApp (NASDAQ: CXAI) stock price went through a major short-squeeze in a high-volume environment as demand for AI companies surged. It jumped to a high of $3.43 on Tuesday, its highest point since September 23rd. At its peak, it was up by 250% from its all-time low.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Short squeeze continued

Copy link to section

CXApp share price surged in a high-volume environment. This surge was notable because it happened in a high-volume environment. Data by Yahoo Finance reveals that the volume stood at over 99 million, much higher than the previous day’s 1.34 million. Its average volume for the stock was 514k. 

The stock jumped as day traders pushed it. It was among the top trending tickers in key platforms like StockTwits and Reddit. The other AI companies that were being pumped were the likes of SoundHound and BigBear AI. 

This trend has continued after the strong Nvidia earnings, which showed that its revenue jumped by more than 200% in the fourth quarter. As a result, many investors have moved to other AI companies, raising concerns about an AI bubble.

The CXApp’s performance mirrors other companies that have done well among meme stock investors. Bit Brother and Mullen Automotive are some of the most notable companies that have become popular among traders in the past few months.

The most recent results showed that the company improved its cost structure by cutting its operating expenses by 56%. Its annual subscription recurring revenue also jumped to 80%, a 25% increase from the previous year.

Its quarterly revenue came in at $1.8 million, down from $2.0 million and $1.9 million in the previous two quarters. The reduction of its net income came in at $1.4 million, a strong improvement after it made substantial losses in the previous four quarters.

CXAI stock price forecast

Copy link to section

CXAI chart by TradingView

The daily chart shows that the CXApp share price has been moving in a horizontal pattern in the past few months. It has remained between the key support and resistance levels at $1.02 and $1.68. 

The shares then made a bullish breakout on Tuesday in a high-volume environment. This surge pushed it above the 50-day moving average while the Percentage Price Index (PPI) moved above the neutral point. The indicator has been rising since October last year.

Therefore, the most likely scenario is where the stock remains being volatile in the coming days. I suspect that it will pull back this week as some of its investors start to take profit. If this happens, the next point to watch will be at $1.68, the upper side of the rectangle channel.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Stock Market Tech Trading Ideas