An exciting merger is on the horizon as Inpixon (NASDAQ: INPX) is set to complete its merger with XTI Aircraft in Q4. This merger could have a positive impact on INPX stock thanks to its potential to drastically increase its revenues. With this in mind, XTI’s Trifan 600 aircraft is highly demanded and could be a selling point for the stock. In light of this, INPX stock may be well-positioned to soar ahead of the merger’s closing.
INPX Stock News
With the company looking to change its business direction into a more lucrative industry, INPX agreed to merge with XTI Aircraft which is currently developing its Trifan 600 aircraft. This aircraft is seeing extremely high demand as it currently has more than 700 conditional pre-orders which would amount to $7.1 billion in revenues at its current price of $10 million per unit.
This potential for generating substantial revenues is one of the reasons INPX stock could soar ahead of the merger’s closing. However, there is another reason why the stock could run ahead of the merger. Currently, the company has an ongoing ATM offering where it intends to raise $25 million which was then increased to $27.4 million. This ATM offering could be ending soon since the company shared that as of June 13, only $7.1 million worth of shares remained under the program. For this reason, the stock could witness a post-offering run soon which could be further catalyzed by the closing of the merger approaching.
While INPX stock could be an extremely profitable trade, it may be a very risky long-term investment. The reason for this is that XTI plans to start producing its Trifan 600 aircraft in 2027 which means that the company would not be able to realize revenues from its $7.1 billion pre-orders anytime soon. It is also worth noting that the production process would require a significant amount of cash which could see the company raising capital through issuing equity – diluting its shareholders in the process. Based on this, INPX may only be a profitable swing trade for traders.
INPX Stock Financials
According to INPX’s Q1 2023 report, the company’s assets took a massive QoQ hit decreasing from $57.6 million to $29.9 million, largely due to a $32.97 million loss due to discontinued operation related to spinning off its division CXApp (NASDAQ: CXAI). Having said that, the company’s cash balance increased from $10.2 million to $15.2 million. On the other hand, the company’s liabilities decreased from $25.5 million to $23.7 million due to the termination of current liabilities of discontinued operations.
When it comes to revenue, the company experienced a YoY increase from $2.6 million to $3.1 million. Expenses also decreased from $11 million to $10.4 million. That said, its net loss actually increased from $11.5 million to $17.1 million due to a $4.8 million loss from discontinued operations related to CXAI’s spinoff, income tax provisions, and interest expenses.
Media Sentiment
@ACInvestorBlog is bullish on INPX stock thanks to its trading volume.
@stockplaymaker1 sees INPX’s potential to be a 100% runner.
Technical Analysis
INPX stock is in a neutral trend and is trading in a sideways channel between $0.19 and $0.23. Looking at the indicators, the stock is above the 200, 50, and 21 MAs which is a bullish indication. Meanwhile, the RSI is overbought at 70 and the MACD is bullish.
As for the fundamentals, the closing of the company’s merger in Q4 and the end of its ongoing ATM offering are catalysts that could see INPX stock run. Taking that into consideration, investors could wait for the RSI to recalibrate and the stock to cool down from its latest run to go long ahead of the company’s catalysts.
INPX Stock Forecast
With its merger with XTI Aircraft closing soon, INPX could be poised to run in the coming weeks due to the excitement surrounding the deal. This bullish sentiment is due to XTI’s aircraft more than 700 conditional pre-orders which would translate to $7.1 billion. At the same time, the stock could also run due to its ongoing ATM offering potentially ending soon since the company had $7.1 million worth of shares under the program as of June 13. With this in mind, investors should note that the stock is extremely risky in the long term, so it may be better to approach it as a swing trade ahead of its catalysts.
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