CXApp (NASDAQ: CXAI) stock price went parabolic on Monday as investors cheered the company’s new partnership with Google. It surged to $7.11, its highest level since August 23rd last year. It has soared by over 412% from its lowest level this year, giving it a market cap of more than $37 million.
Why CXApp has soaredCXApp is a technology company that provides solutions for enterprise companies. Its solutions include the likes of workplace analytics, occupancy management, and desk and meeting room reservations.
CXApp is in an industry that is growing at a fast pace as companies embrace the hybrid workplace model. Recent studies show that most American companies are considering this approach to save costs and boost productivity.
The company is also boosting its investments in the artificial intelligence (AI) space, which is the biggest theme in the market this year.
CXApp share price jumped sharply on Monday after the company announced a partnership with Google Cloud. The jump happened in a high-volume environment as the number of shares that exchanged hands jumped to over 238 million. This volume was a big increase from Thursday’s 894k
This deal will help it deploy its platform on Google Cloud, one of the biggest cloud computing platforms in the world. Naresh Soni, the Chief Technology Officer said:
“By leveraging our AI-native platform, powered by cutting-edge technology and data insights, we’re poised to be the technology leader enabling transformative workplace experiences.”
The CXApp partnership with Google is an important one but I suspect that it will have minimal impact on the company’s business. For one, any company can leverage Google Cloud’s technology. Also, Google did not deliver a statement about the partnership.
Further, it is not uncommon for companies, including those in the blockchain space to issue press releases about their cloud partnerships. Therefore, the announcement was likely meant to push the stock higher after the company warned that it would delay in publishing its 10K report.
Is CXAI stock a good buy?
CXApp is still a loss-making company as evidenced by its financial results published in November. The company said that its revenue came in at $1.7 million in the third quarter of last year. That was an improvement from the $1.74 million it made in the same period in 2022. Its loss from operations jumped to $4.2 million.
CXAI share price has done well this year because of the ongoing trends in artificial intelligence (AI). It has risen from the year-to-date low of $1.15 to a high of $7.11. As a result, the stock has jumped above the 50-day and 200-day moving averages.
It has formed a god candle and moved above the crucial resistance point at $3.46, its highest point in February. Therefore, I believe that the stock will retreat sharply in the coming days because of profit-taking. If this happens, it could retreat to the psychological level of $5.
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