MICT Inc. (NASDAQ: MICT) stock has struggled for direction in 2021, with upside action limited significantly. While the stock has held firm against the broader sell-off, it was in dire need of catalysts to steer a bounce back from near one-year lows. A solid financial report affirming growth might also be the catalyst to strengthen investor confidence in the stock.
The company’s transition from telematics to fintech in China is going on well, all but affirming long-term prospects. Over the past year, the fintech company has established a significant cash balance highly needed to execute and support the growth strategy. Growth in the insurance business is going on well despite just starting in the fourth quarter.
MICT reporting a 146% increase in Q4 2020 revenue to $824,000, all but underscore growth in the core business after the recent transition. Robust revenue growth explains the narrowing of net loss to $7.6 million from $9.9 million in the same period last year. Robust growth in the core fintech business is a development that should trigger renewed investor interest in MICT which should see it breaking out to the upside after consolidating in the $1.65 to $3 a share trading range.
Finance and Entertainment Reporter
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