2 reasons why TruGolf stock price went parabolic

TruGolf (NASDAQ: TRUG) stock price surged by more than 60% on Wednesday, becoming one of the best-performing companies in Wall Street. It soared to a high of $2.27, its highest point since January 2024.

The company jumped sharply after it expanded its AI technology licensing agreement with mlSpatial. According to the statement, TruGolf will have the first right of refusal to buy 100% of mlSpatial assets. The statement added:

“By leveraging AI technology, we are empowering players to enjoy indoor golfing like never before, with enhanced accuracy, ease of use, and immersive gameplay.”

For starters, TruGolf is a small company that provides launch monitors, simulators, and other products for the golfing industry. Its products are used widely in the United States and other countries.

The most recent results revealed that TruGolf had a net loss of $359k in Q4 after it made a profit of $577k in the same period in 2022. It lost $891k in the first nine months of the year.

TruGolf stock price also jumped after rumours emerged that Topgolf Callaway was up for sale. The report came from South Korea’s Chosun Daily newspaper. According to the report, the company will spin off its Topgolf brand and then sell its Callaway Golf Equipment and apparel for $2.9 billion. 

We reached out to Topgolf Callaway for comment but did not hear from the company. The separation of Topgolf and Callaway would mark a new phase for the firm. Callaway acquired Topgolf in a $2.9 billion deal.

The goal was to create a giant player in the golfing industry but the outcome has not been pleasing as growth has stalled. Callaway’s stock has dropped by more than 57% from its highest point in 2021. It has also underperformed Acushnet, the parent company of Titleist.

Therefore, TruGolf stock price jumped because of the increased interest in the golfing industry and its AI partnerships.