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

This tech share is on fire right now…

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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.

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