Software company Phunware’s (PHUN) shares sky-rocketed in price on October 22, due mainly to speculation surrounding its involvement in former President Donald Trump’s social media platform development. However, the stock’s price has since fallen on the company’s weak financials. So, let’s discuss if it is wise to add the stock to one’s portfolio now.Phunware, Inc. (PHUN) in Austin, Tex., is a pioneer of Multiscreen-as-a-Service (MaaS), a fully integrated enterprise cloud platform for mobile, and has made several partnerships and acquisitions. The stock has gained 330.7% in price over the past month to close yesterday’s trading session at $4.35. The shares had soared more than 1,000% on October 22 to hit their 52-week high of $24.04, due mainly to speculation that PHUN would play a significant role in former U.S. President Donald Trump’s latest attempt to launch a social media platform.
However, no reports have yet been published to confirm that PHUN would help develop Trump’s platform. In addition, according to an SEC filing by the company on October 26, it has registered a common stock shelf offering for roughly $48.50 million worth of its shares. This led to a decline in investor sentiment.
The stock is currently trading 81.9% below its 52-week high. The company also remained unprofitable in its latest reported quarter. So, PHUN’s near-term prospects look bleak.