synopsis

The company said the return to profitability was largely due to the strategic shift away from its intelligent chips and services segment, and dedication of resources to its central processing algorithm services.

Shenzhen, China-based MicroAlgo Inc.’s (MLGO) shares trended on Stocktwits early Tuesday after the stock recovered in the after-hours following Monday's earnings-induced slump.

The provider of bespoke central processing algorithms said it reported a profit of 53.4 million yuan ($7.3 million) for the fiscal year that ended Dec. 31, 2024, reversing from a loss of 266.2 million yuan a year earlier. Revenue came in at 541.5 million yuan ($75.3 million), down from 580.02 million yuan in 2024.

The company said the return to profitability was mainly due to the strategic shift away from its intelligent chips and services segment and the dedication of resources, which resulted in strong performance in its central processing algorithm services.

Min Shu, CEO of MicroAlgo, said, “We are very pleased with MicroAlgo's performance in 2024, achieving profitability and demonstrating the strength of our central processing algorithm services segment.”

“Looking ahead, we will continue to invest in research and development, expand our market reach, and pursue strategic opportunities to further solidify our position as a leader in the data intelligence processing industry.”

On Stocktwits, retail sentiment toward MicroAlgo stock remained ‘neutral’ (49/100), and the message volume also stayed ‘normal.’ It was among the top three tending tickers on the platform early Tuesday.

MLGO sentiment and message volume as of 1:47 a.m. ET, April 29 | source: Stocktwits

A bullish watcher raved over multiple bullish signals on the technical chart and also flagged the potential of a short squeeze, given the high short interest. According to Koyfin, the stock's short interest last stood at 42%.

But another user shunned the stock as a Chinese “pump-and-dump” scheme.

MicroAlgo stock fell 10.23% on Monday following the earnings report but rose 3.35% in extended trading. The stock has gained nearly 90% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

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