2024-06-03 12:17:33 ET
Summary
- SurgePays, Inc. is facing uncertainty as a large portion of its revenue depends on a policy decision that has yet to be made.
- The company saw a decline in sales and a decrease in net income and earnings per share in the first quarter of FY2024.
- The management's self-compensation and lack of clarity on the future without ACP funding are concerning.
- I have decided not to upgrade SURG to "Buy" but to reaffirm my "Hold" rating today.
Intro & Thesis
I initiated coverage of SurgePays, Inc. ( SURG ) stock with a "Buy" rating back in February 2024. At that time, I underestimated the risks of the ACP funding, which ultimately materialized relatively quickly, so I had to revise my rating: In March, I downgraded SURG to "Hold" and since then, the stock has fallen by more than 15% while the broad market continues to rise....
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SurgePays Stock Is Cheap But I Can't Upgrade It Still