Viggle Inc (NASDAQ:VGGL), an operator of a mobile and web based entertainment platform, finished the last trading session with a massive gain of 58.65% after reporting its third quarter financial results. On an intraday basis, it was up as much as 75% but a late hour bout of profit booking dragged the price down a bit. The volume surged to 40 million, about 10 times higher than the daily average of 4 million only.
Viggle Inc (NASDAQ:VGGL) reported revenue of $5 million, reflecting a huge 52% increase on a y-o-y basis but missing the consensus of $7 million by a wide margin. The positive thing was the 116% increase in the number of net registered users but then again, the adjusted EBITDA cam up really short at a loss of $8.7 million against the expected figure of $7.3 million and the operating losses ballooned to $19.7 million, up by nearly 37% on a y-o-y basis.
Based on these disappointing figures, it is really hard to explain the monstrous jump the stock had last session but perhaps the excitement could be attributed to the increase in the user base. That would definitely be a forward thinking approach but the conventional analysts might not like this indifference to the cold, hard financial metrics.
The technical picture of the stock didn’t improve significantly despite this huge spike, which could be attributed to the low base of the price in the recent months. The stock has remained in the grip of the bears for the last few years and as the lower highs in the last 12 months suggests, the long term trend has not changed yet.
The stock has reached close to the supply area in the band of $4-$5 and most probably, the bears will push the price don once again from that area.
