Bakkt is a digital asset marketplace launched in 2018 by the Intercontinental Exchange (ICE). In recent years, the company has made headlines for its efforts to bring institutional-grade infrastructure to cryptocurrency trading and payment processing. In this blog post, we will look at Bakkt’s recent performance and make predictions about the company’s future price movements.
To make informed forecasts about the company’s prospects, we will examine factors such as Bakkt’s financial performance, market trends, and the broader economic climate. This post will provide valuable insights into the potential direction of Bakkt’s stock price, whether you are a seasoned investor or new to the world of finance.
About Bakkt Holdings Inc
Bakkt Holdings Inc. operates a digital asset platform for institutional and retail investors. Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, and a group of leading companies in the technology, retail, and financial industries formed the company in 2018.
Bakkt provides a variety of products and services to help institutions and individuals buy, sell, and use digital assets such as bitcoin and other cryptocurrencies. A digital asset warehouse, a futures and options exchange, and a payment platform are among the products available.
Technical analysis
Bakkt’s stock has had a rough year with a 52-week change of -84.31%. This is significantly worse than the S&P 500’s 52-week change of -20.11%. The stock’s 50-day and 200-day moving averages are 1.8274 and 2.9031, respectively, indicating a downtrend in the stock’s price.
Bakkt has a relatively high beta of 4.42, indicating that the stock is more volatile than the overall market. The company also has a relatively high level of insider ownership at 22.08%, as well as a significant percentage of institutional ownership at 30.76%.
There is currently a high level of short interest in Bakkt, with 12.27 million shares being sold short as of November 29, 2022. This represents 15.61% of the company’s outstanding shares and 17.72% of its float. The short ratio, or the number of days it would take for short sellers to cover their positions based on the stock’s average daily trading volume, is currently at 7.22.
Fundamental analysis
Bakkt is a digital asset marketplace that has a market capitalization of $103.74 million. The company’s enterprise value is negative at -$143.43 million, indicating that the market values the company’s liabilities higher than its assets. Bakkt does not currently have a price-to-earnings ratio because it has not reported profits.
The company’s price-to-sales ratio is 2.03, which is relatively high compared to other companies in the industry. Its price-to-book ratio is 0.56, indicating that the market values the company’s assets at a discount to their book value. Bakkt’s enterprise value-to-revenue ratio is -2.84, which is also negative and indicates that the market expects the company’s revenue to decline in the future. The company’s enterprise value-to-EBITDA ratio is 0.77, which is relatively low and suggests that the market is not optimistic about Bakkt’s future earnings potential.
In terms of profitability, Bakkt has a profit margin of 0.00% and an operating margin of -463.58% in the trailing 12 months. This indicates that the company is not generating profits and is operating at a significant loss. Bakkt’s return on assets and return on equity are also negative at -23.89% and -391.65%, respectively.
Closing thoughts on Bakkt stock price prediction
Overall, Bakkt’s stock has underperformed in the market and exhibits a downtrend based on its moving averages. It also has a high level of volatility and significant short interest. Bakkt is a company that is not currently generating profits and has a high level of debt. The market is also not optimistic about the company’s future earnings potential, as indicated by its negative enterprise value and low enterprise value-to-EBITDA ratio. It is advisable for investors to be cautious before investing in the stock.