$SPRT Reverse Stock Splits to Sell: Support.com (
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Posted On: 05/05/2017 3:08:45 PM
$SPRT Reverse Stock Splits to Sell: Support.com (SPRT)
If you’ve never heard of Support.com, Inc. (NASDAQ:SPRT), it’s not a chain of counseling businesses for people who just got dumped or a retailer of plus-sized brassieres; SPRT is actually in the cloud software and services business, a market that is exploding with demand.
Pacific Crest estimates that the cloud services business could balloon from $55 billion per year to $200 billion per year by 2020. With that level of demand growth, most cloud services stocks have been doing pretty well in recent years. Not Support.
Despite the incredible growth statistics mentioned above, SPRT stock is down 73% in the past three years. In the same time, the company’s revenue has declined 27.5%. Whatever cloud services SPRT is providing the market doesn’t seem to want.
Of course the cherry on top of the SPRT stock bear case is the fact that the company just announced a 3-to-1 reverse stock split as well. It’s going to take a lot more than a reverse stock split to provide support for Support.com’s saggy share price.
If you’ve never heard of Support.com, Inc. (NASDAQ:SPRT), it’s not a chain of counseling businesses for people who just got dumped or a retailer of plus-sized brassieres; SPRT is actually in the cloud software and services business, a market that is exploding with demand.
Pacific Crest estimates that the cloud services business could balloon from $55 billion per year to $200 billion per year by 2020. With that level of demand growth, most cloud services stocks have been doing pretty well in recent years. Not Support.
Despite the incredible growth statistics mentioned above, SPRT stock is down 73% in the past three years. In the same time, the company’s revenue has declined 27.5%. Whatever cloud services SPRT is providing the market doesn’t seem to want.
Of course the cherry on top of the SPRT stock bear case is the fact that the company just announced a 3-to-1 reverse stock split as well. It’s going to take a lot more than a reverse stock split to provide support for Support.com’s saggy share price.
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