TCX Should I Buy
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Tucows Inc (TCX) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available for investment. The stock's technical indicators, options data, and financial performance suggest a cautious approach, as there are no strong positive catalysts or trading signals to support immediate investment. Holding off for better clarity or stronger signals is advisable.
The MACD is positive and expanding, which is a bullish signal. However, the RSI is neutral at 36.164, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below key resistance levels, with support at 17.204 and resistance at 18.77. Overall, the technical indicators do not strongly support a buy decision.
The company is focused on improving liquidity and financial flexibility through the Ting asset sale and debt reduction. It is also working on a formal capital allocation framework to balance deleveraging, reinvestment, acquisitions, and share repurchases for sustainable growth.
Hedge funds are aggressively selling the stock, with a 3294.36% increase in selling activity over the last quarter. Wavelo's adjusted EBITA margin is projected to decline in 2026 due to fee reductions and increased costs. Additionally, the gross margin dropped YoY, and the stock's next-day and next-week probabilities suggest potential short-term declines.
In Q3 2025, revenue increased by 6.78% YoY to $98.56M, and net income improved slightly but remains negative at -$23.02M. EPS also improved but is still negative at -2.08. Gross margin declined by 1.17% YoY to 23.74%. While there is some growth in revenue, the company is still operating at a loss, which is a concern for long-term investors.
No recent analyst ratings or price target changes are provided. The lack of updated analyst sentiment makes it difficult to gauge Wall Street's current view on the stock.
