The yr 2021 has seen a resurgence of legacy momentum shares and former excessive fliers rise from the ashes fueled by social media-driven short-squeezes.
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Legacy media and leisure platform RealNetworks (NASDAQ: RNWK) inventory has reversed its multi-year downtrend. The yr 2021 has seen a resurgence of legacy momentum stocks and former excessive fliers rise from the ashes fueled by social media-driven short-squeezes. Shares like Blackberry (NYSE: BB), which was previously Analysis In Movement buying and selling, used to commerce at over $300 per share over twenty years in the past in the course of the first-day buying and selling mania. Lengthy earlier than streaming providers like Netflix (NASDAQ: NFLX), Disney+ (NYSE: DIS) and platforms like Roku, Inc. (NASDAQ: ROKU), RealNetworks paved the best way as a number one pioneer of video streaming expertise with shares buying and selling north of $100 virtually twenty years in the past. Quick ahead to 2021, RealNetworks is reemerging as cellular gaming and a biometric facial recognition play with its SAFR Pc Imaginative and prescient platform to reinforce cybersecurity and bodily id authentication wants for industrial purchasers. Zero belief safety protocols will be enormously enhanced with biometrics in mild of the SolarWinds (NYSE: SWI) hacking catastrophe. Prudent traders searching for a comparatively low cost entry right into a legacy turnaround play on this area can monitor shares for opportunistic pullback ranges to achieve speculative publicity.
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On Nov. 3, 2020, RealNetworks launched its fiscal third-quarter 2020 outcomes for the quarter ending September 2020. The Firm reported an earnings-per-share (EPS) lack of (-$0.08) on revenues of $16.6 million versus $17.7 million within the yr in the past interval. The Firm ended the quarter with $13.2 million in money and money equivalents. The Firm signed a definitive settlement to promote Napster to MelodyVR for a complete transaction worth of $70 million. MelodyVR will assume roughly $44 million of Napster’s liabilities.
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RealNetworks CEO Rob Glaser supplied colour on the technique consisting of the SAFR Pc Imaginative and prescient product and free-to-play informal cellular video games. The Firm is within the means of promoting Napster. GameHouse cellular video games division grew 60% YoY pushed by success of Scrumptious World and Scrumptious Mattress & Breakfast. Glaser stays assured that, “free-to-play video games will proceed to be our main progress engine for our sport enterprise.”
RealNetworks AI-powered biometric facial recognition platform SAFR works in real-time capable of confirm identities no matter face masks and through dwell video. The pc imaginative and prescient platform is touted as 99.9% correct in performing a number of facial recognition within the time it takes rivals to finish one. Comment Holdings (NASDAQ: MARK) is one such competitor. SAFR purposes vary from authentication, digital and bodily safety, healthcare to industrial makes use of. CEO Glaser up to date new alternatives for its SAFR product, “As an example, the Tijuana Worldwide Airport Cross Border Xpress or CBX lately selected SAFR to trace masks compliance and collect important operations information inside the terminal to optimize operations and enhance passenger stream.” The Firm continues to execute on two SBIR contracts awarded in Q2 by the U.S. Air Drive.
Completion of Napster Sale
On Jan. 5, 2021, RealNetworks introduced the completion of the sale of Rhapsody Worldwide Inc. (aka Napster) to MelodyVR Group PLC. The worth of the deal is $70.6 million comprised of $15 million in money, $11.6 million in MelodyVR restricted inventory and assumption of Napster liabilities of $44 million. CEO Rob Glaser acknowledged, “The proceeds of the sale strengthen Actual’s stability sheet and allow us to concentrate on much more deeply on our main progress initiatives which include two machine-learning-based companies, SAFR and Kontxt, and our GameHouse informal gaming enterprise.
RNWK Opportunistic Pullback Ranges
Utilizing the rifle charts on the month-to-month and weekly time frames permits a broader view of the taking part in subject for RNWK inventory. The month-to-month rifle chart has a double-barrel pup breakout comprised of the shifting common (MA) pup breakout with a rising 5-period MA close to the $1.60 Fibonacci (fib) degree and a month-to-month stochastic mini pup. The mini pup targets the higher Bollinger Bands (BBs) at $2.36. The weekly rifle chart additionally has a double-barrel pup breakout triggered by the market construction low (MSL) above $1.43 with a rising 5-period MA at $1.84 pushed by the weekly stochastic mini pup with higher BBs at $2.20. Because the BBs have been hit, prudent traders can search for opportunistic pullback ranges on the $1.76 fib, $1.52 fib, $1.43 weekly MSL set off, $1.33 fib, and the $1.14 fib.The upside trajectories vary from the $3.38 as much as the $5.20 fib ranges.