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Datavault AI Inc (DVLT) is not a strong buy at this moment for a beginner investor with a long-term strategy. While the company has shown significant revenue growth and promising strategic acquisitions, the financials remain weak with negative net income, declining EPS, and gross margin. Additionally, technical indicators and trading signals do not provide a compelling entry point currently. It is better to hold off on investing until there are clearer signs of improvement in financial performance or stronger technical and trading signals.
The MACD is positive but contracting, RSI is neutral at 48.667, and moving averages are converging, indicating no strong directional trend. The stock is trading near its pivot level of 0.733, with resistance at 0.821 and support at 0.645. Overall, the technical indicators suggest a neutral trend with no clear buy signal.
The company has raised its price target to $4 from $3, supported by strategic acquisitions (WiSA merger, CSI acquisition), new licensing deals, and a $150M Bitcoin infusion. The IP portfolio in Web 3.0, audio technologies, and data monetization is promising.
The company's financials show a negative net income of -$32.98M, a significant drop in EPS (-76.26% YoY), and a gross margin decline (-83.04% YoY). Additionally, there are no significant trading trends from hedge funds or insiders, and the stock's short-term trend suggests a potential decline of -0.93% in the next day.
In Q3 2025, revenue increased by 147.78% YoY to $2.9M, but net income remains negative at -$32.98M, albeit an improvement of 348.96% YoY. EPS dropped significantly by -76.26% YoY to -0.33, and gross margin declined sharply to 3.27%, down -83.04% YoY. Despite revenue growth, the financials indicate weak profitability.
Maxim raised the price target to $4 from $3 and maintains a Buy rating, citing strategic acquisitions, licensing deals, and Bitcoin infusion as positive developments. However, the company's financial struggles remain a concern.