SurgePays Stock Surges As Strong Guidance Overshadows FY24 Underperformance: Retail Anticipates Multi-Day Run

Shares of nano-cap SurgePays, Inc. (SURG) jumped on Wednesday after the telecom and fintech company issued an upbeat outlook after announcing subpar annual results.

The Barlett, Tennessee-based company reported a loss of $2.39 per share and revenue of $60.88 million for the year ended Dec. 31. This compares to the year-ago earnings per share (EPS) of $1.45 and revenue of $137.14 million. 

SurgePays blamed the predicament on the end of the federally funded Affordable Connectivity Program (ACP).

The ACP is a U.S. government-sponsored program administered by the Federal Communications Commission (FCC) that provides affordable internet access to low-income households. The program stopped accepting applications in the first half of 2024, with April 2024 being the last fully-funded month.

Even so, the company was upbeat about its outlook. “However, strategic investments made during this transition — including AT&T integration, POS growth, and the development of our MVNE platform — have built the foundation for 2025's goal to return to growth and profitability,” it said. 

Brian Cox, Chairman and CEO, said, "We built the infrastructure. Now we are scaling. With AT&T integration complete and LinkUp Mobile launching nationally, SurgePays is positioned for the most aggressive revenue growth phase in our history."

LinkUp Mobile is the company’s retail prepaid wireless brand.

Looking ahead, the company expects over $200 million in revenue over the next 12 months and positive cash flow from operations before the end of 2025, following the successful integration and official launch with AT&T. 

The revenue guidance for the year is markedly above the Finchat-compiled consensus of $95.11 million. 

On Stocktwits, retail sentiment toward SurgePays stock stayed ‘extremely bullish’ (100/100) and the message volume spurted to ‘extremely high’ levels.

SURG sentiment and message volume March 26, as of 12:54 pm ET | Source: Stocktwits

A bullish watcher positioned for a multi-day run and predicted a move to $3 on Thursday.

Another user attributed his bullish sentiment to the moving average convergence divergence (MACD) indicator crossing over.

SurgePays stock soared by over 54% to $2.13 on Wednesday afternoon. The stock is down about 22.5% this year. If the gains are sustained, the stock is on track to finish with the biggest one-day gain in four years.

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