Catenaa, Monday, April 21, 2025– MicroAlgo Inc, the popular penny stock is continuing with its gains as the stock gained by over 90% on Monday afternoon as the company tries to enter the tech landscape.
MicroAlgo Inc. stock has been a leading performer in the US equity market, which is hit by uncertainties with US trade tariffs, in the last one-month period with over 411% gain in the stock.
The significant investment move by China’s holographic cloud service provider WiMi Hologram Cloud to increase its ownership stake in MicroAlgo to nearly 68%, drove the gain in the stock in March, promising a decade-long lock-up on these shares.
Meanwhile, the strategic move by the company to issue new shares at $0.80 as part of a $20 million convertible bond deal led to further increases in MicroAlgo’s market value, doubling the stock’s worth.
MicroAlgo Inc. engages in the development and application of bespoke central processing algorithms. The Company provides comprehensive solutions to customers by integrating central processing algorithms with software or hardware, or both.
The range of its services include algorithm optimization, accelerating computing power without the need for hardware upgrades, lightweight data processing, and data intelligence services.
The company has recorded a revenue of $580 million in 2023, which is equal to EPS of $58. The price-to-sales ratio is notably high at 27.65, hinting at high expectations from its stockholders despite not-so-stellar earnings.
The stock’s price-to-book value stands at 1.54, suggesting some level of underpricing relative to its book value. Yet concerns arise with the return on equity pegged at a negative 2.12%, reflecting challenges in generating profit from shareholder investments.
The pretax profit margin is also in the red at -2.7%, further emphasizing the uphill battle in profitability.
