RNWK Stock Price Increases Over 10% Pre-Market: Why It Happened

By Amit Chowdhry ● February 22, 2021
  • The stock price of RealNetworks Inc (NASDAQ:RNWK) is trading at over 10% pre-market. This is why it happened.

The stock price of RealNetworks Inc (NASDAQ:RNWK) is trading at over 10% pre-market as of 6:27 AM ET. Investors appear to be responding to a Seeking Alpha report.

“After nearly being de-listed following a long, losing slog in digital media the company has done a true pivot toward exciting technology. In addition, the financial momentum is all moving in the right direction. After shedding Napster the company’s profit margin is 77%. EBITDA loss has been moving in the right direction for six consecutive quarters and the company will likely be cashflow positive next reporting period. Valuation looks low when compared with peers and the positive product developments,” wrote Seeking Alpha in its report.

Seeking Alpha also pointed out that the legacy assets that investors did not like have been dealt with by management. And the free-to-mobile gaming and computer vision are expected to become future cash cows.

“The main reason we like this obscure stock has nothing to do with its history but is rather this exciting new product. While free-to-mobile gaming is an earner, we think SAFR (computer vision product by RealNetworks)) is the potential homerun. It appears to have incredible upside potential, high-profit margins, and a plethora of use cases in the area of computer vision/facial recognition (really, it’s the area of machine learning and artificial intelligence),” added Seeking Alpha in the report.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.