AI enterprise SaaS platform provider Alfi’s (ALF) planned roll-out of digital advertising screens in Uber and Lyft (NASDAQ:LYFT) vehicles has garnered significant investor attention. However, the stock could lose ground due to its current plans to repurchase up to $2 million worth of its shares. Furthermore, given that its inadequate financials do not justify its current valuation, is the stock due for a price retreat in the near term? Read on to learn more. Alfi, Inc. (ALF), which is based in Miami Beach, Fla., provides an artificial intelligence (AI) enterprise SaaS platform and develops interactive digital out-of-home advertising experiences. ALF’s shares have soared 37.2% over the past month on investors’ optimism surrounding the commencement of its installation of 10,000 Alfi tablets in Uber Technologies, Inc. (NYSE:UBER) and Lyft, Inc. (LYFT) - operated vehicles in the Orlando and Tampa areas.
However, its share price has declined 34.7% over the past five days. The stock closed Friday’s trading session at $9.18, which was 59.2% below its 52-week high of $22.50, which it hit on June 28.
The meme stock craze has been fueling ALF’s rally—the company saw its market cap balloon to $201 million from $15.5 million during its market debut in May 2021. While the commencement of the AI tech company’s SaaS technology for digital advertisement at Belfast International Airport kiosks and its recent South Florida call center operations bode well for the stock, the company lacks fundamental strength. And its sky-high valuation and negative profit margin could make it harder for the stock to maintain the rally.