Why has the Pointerra share price rocketed 50% in less than a week?

This tech share is on fire right now…

| More on:
A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Pointerra shares have been on fire in recent sessions
  • They are now up 50% in under a week
  • Some investors may believe its shares have been oversold

The Pointerra Ltd (ASX: 3DP) share price has continued its positive run on Monday.

In morning trade, the geospatial data technology company's shares are up over 9% to 29 cents.

This means that the Pointerra share price is now up over 50% since last Tuesday.

Why is the Pointerra share price rocketing higher?

The recent gain by the Pointerra share price is a bit of a mystery as there has been no news out of the company since the end of April.

That last piece of news saw the company report a 13% or US$1.9 million increase in quarterly annual contract value (ACV). This brought its total ACV to US$16.28 million as of 29 April 2022.

Management highlighted that its Pointerra3D service is rapidly becoming a "must-have" platform for the US energy utility sector with existing customers advocating adoption of the company's digital twin solution amongst peer utilities.

This is expected to drive further growth in platform deployment and ACV across Pointerra's largest sector.

In light of this positive outlook and the Pointerra share price down by over 50% since this time last year, it appears that some investors believe a buying opportunity has been created.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Technology Shares

Why are investors fighting to buy this speculative ASX stock today?

What is getting investors excited today? Let's find out.

Read more »

Two men laughing while bouncing on bouncy balls
Technology Shares

Top broker says ASX 300 tech stock has 18% upside after sell-off

ASX 300 investors overreacted in punishing the high flying tech stock yesterday, this top broker says.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Earnings Results

Xero share price rockets to record high on explosive half-year growth

The tech star delivered another impressive half year results this morning.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

These ASX 200 tech stocks just crashed! Is this a no-brainer buying opportunity?

Bell Potter thinks these tech stocks could be great options following declines this week.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Technology Shares

Down 45% in 8 months, why this ASX 200 tech stock 'now looks attractive'

Down 45% since March, this investing expert sees good value in the ASX 200 tech stock.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Technology Shares

Why is this ASX tech stock crashing 27% today?

Why are investors hitting the sell button? Let's find out.

Read more »

Man looks confused as he works at his laptop. watching the Magnis share price movements
Technology Shares

WiseTech share price in spotlight again as class action mounts

The headlines continue rolling in.

Read more »

Unsure man analysing data on laptop.
Earnings Results

ASX 200 tech stock sees red as investors punish Q3 results

Investors continue digesting the numbers.

Read more »