FingerMotion's Parabolic Rally Defies Gravity - Avoid

(8min)

Summary

  • FingerMotion's recent 240% stock surge was driven by institutional interest and narrowing losses, but fundamentals don't justify the move.
  • The company shows strong revenue growth (39% YoY) but faces declining gross margins and persistent operating losses, with very limited cash on hand.
  • FNGR stock's valuation appears stretched at 7.5x EV/Sales, especially given low earnings visibility and ambitious growth plans that will likely require additional funding.
  • Despite industry potential, I rate FNGR shares as a 'Hold' due to liquidity risks, lack of profitability, and limited upside unless Q4 results significantly beat expectations.

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FingerMotion Overview

FingerMotion, Inc. (NASDAQ:FNGR) is a small-cap firm that specializes in mobile payment and recharge platform systems in China, offering a variety of different telecom products and services, enabling SMBs (and businesses and brands in general) to "communicate and

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This article was written by

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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