CXApp (CXAI) stock price is soaring: find out why

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Written on Apr 17, 2024

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CXApp published encouraging financial results as its ARR jumped.
It also expanded its gross margins in the fourth quarter of 2023.
The company has also changed its name to CXAI.

The CXApp (NASDAQ: CXAI) stock price is set to have a great day after the company published encouraging results. It surged by over 27% in the premarket session, making it one of the best-performing companies. Despite this rebound, it has retreated by over 60% in the past 12 months, bringing its market cap to about $60 million.

CXApp’s strong financial results

The reason for the strong rally is that the company published strong financial results on Tuesday. In a statement, the company said that its annual recurring revenue (ARR) jumped in the fourth quarter as demand for its solutions rose.

Its subscription-based recurring revenue consisted of about 81% of its total revenue. Its gross margin expanded to 80%.

Most importantly, the company announced that it was changing its name from CXApp to CXAI as it continues its transformation into an artificial intelligence firm.

These results mean that the company’s business was doing relatively well as demand for its services rise. However, I did not find the exact figures including its profits and losses, including in its earnings call.

For starters, CXApp is a company in the technology industry that helps companies embrace the hybrid workplace strategy.

Some of the features in its ecosystem are desk booking, office booking, real-time mapping, and internal communications. According to its website, it provides its services to companies like Warner Bros. Discovery, Adobe, Rivian, and Pfizer. Still, I don’t see how these services will fit in its artificial intelligence angle.

CXAI stock price forecast

CXAI chart by TradingView

The daily chart shows that the CXApp stock price has done well this year. It has risen from the year-to-date low of $1.15 to a high of $7.11, helped by its recent partnership with Google Cloud. Most recently, it retreated to $4 as traders waited for its fourth-quarter and annual results.

The stock has remained above the 50-day and 200-day Exponential Moving Averages (EMA), which is a positive thing. It also remains above the important support at $3.46, its highest swing in February.

Therefore, in the near term, the stock will likely rise as buyers target the year-to-date high of $7.10. In the long term, however, I suspect that CXAI will resume the downward trend as bears target the support at $2. This view will be confirmed if it drops below the support at $3.45.