Stock Market

Do you like fast action in the financial markets? Or, do you prefer a “slow but steady wins the race” approach to investing? It’s time for a gut-check, as Troika Media Group (NASDAQ:TRKA) stock is definitely a fast mover, and gets a “B” rating for its growth potential and high-risk level.

Maybe you’d prefer to stay away from stocks that are highly volatile or might be susceptible to bear raids and short squeezes. If so, then pick another stock, or at least gather all the relevant facts before deciding.

On the other hand, maybe you’re ready to ride the roller coaster. If that’s the case, then let’s learn about Troika’s impressive top-line results – but first, we need to consider what thrills and chills might await Troika Media Group’s brave investors.

TRKA Troika Media Group $0.24

TRKA Stock, Short Sellers and Squeezers

Not long ago, Thomas Yeung identified a “1,000% opportunity created by overeager short-sellers.” This opportunity is TRKA stock, which Yeung and Bret Kenwell (with assistance from Fintel) determined to have short interest of over 43%.

Now, the term “opportunity” is in the eye of the beholder. Sure, you might get lucky and end up on the right side of the trade if you bet on a massive short squeeze. And, short interest exceeding 43% is notable.

Yet, the trade could go in either direction. As Yeung explained, the Securities and Exchange Commission (SEC) placed TRKA stock on its Short Sale Restriction (SSR) List. “The rule is designed to decrease the risk of short-selling ‘bear raids,’ placing limits on any stock that has dropped by more than 10% in one day,” Yeung clarified.

In other words, this stock is on the bulls’ and the bears’ radars. So, be prepared for rapid-fire share-price moves or just stay out of the way.

Troika Media Group Is a Rapid Revenue Grower

We’ve discussed the potential volatility of TRKA stock, but what about the company itself? Let’s start with the basics: Hailing from New York, Troika Media Group specializes in marketing and brand-building.

Troika’s investors responded negatively when the company reported a net earnings loss for the six months ended Dec. 31, 2022. Before you write off Troika Media Group, though, be sure to get the full story.

The company’s sales growth is undeniable. Year-over-year, Troika increased its revenue by a whopping 1,125% to $187.91 million.

The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved dramatically, from -$4.587 million in the year-earlier period to $4.95 million (positive, not negative) during the six months ending on Dec. 31, 2022.

Those results are undeniable, but there’s always room for improvement. From now on, investors should check to see if Troika Media Group makes progress toward profitability. Hopefully, Troika can keep its costs down, especially in the category of selling, general and administrative costs.

What You Can Do Now

In the final analysis, Troika Media Group has impressive sales growth but can still improve its bottom-line results. Meanwhile, prospective investors should consider the potential for bear raids and short squeezes.

Clearly, TRKA stock isn’t right for every investor. You’ll definitely want to assess your own risk tolerance before making any financial decisions. If you can handle the volatility, though, then consider a small share position in Troika Media Group.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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