ShiftPixy (NASDAQ: PIXY) stock price has been one of the best-performing companies this week. The shares surged by more than 43% on Thursday followed by another 38% in the pre-market session. This rally means that the stock has soared by over 150% from its lowest point in November, giving it a market cap of over $4.7 million.
ShiftPixy is a small company that has come under intense pressure in the past few years. The shares have plunged by more than 98% this year, putting the company at risk of delisting by Nasdaq. It solved this listing challenge by doing a reverse split, which pushed its stock price above $1.
PIXY share price has jumped sharply this week in a no-news environment. Therefore, the likely reason for the rally is that investors are likely pumping it. A closer look at key social media websites sites like Reddit, X (Twitter), and StockTwits shows that it is one of the most trending stocks.
ShiftPixy stock was trending in StockTwits
There are signs that the meme stock era is coming back as traders bet on rate cuts by the Federal Reserve. Recently, stocks like GameStop, Clover Health, and AMC have been quite volatile.
Fundamentally, ShiftPixy is in a lot of trouble as its losses jump and revenue drop. Its total revenue dropped to $4 million in the last reported quarter from $9.6 million in the same quarter in 2022. At the same time, the company’s net loss crashed to over $7.5 million.
Therefore, it is quite risky to invest in ShiftPixy as its business comes under pressure. It is also a thinly traded company with an average volume of 391k shares in the past three months. This makes it a good candidate for being a short-squeeze company.
ShiftyPixy stock price forecast
Turning to the daily chart, we see that the PIXY share price has been in a strong bearish trend in the past few months. As a result, the Average True Range (ATR) has dropped to the lowest level since September 23rd. The shares have remained in a tight range in the past few weeks.
ShiftPixy share price is also consolidating at the 50-day and 25-day moving averages. Therefore, the outlook for PIXY is quite bearish although I suspect that it will be volatile in the coming months. My long-term view is that the shares will drop below $3 in the coming months.
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