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

Two people work with a digital map of the world, planning their logistics on a global scale.
Technology Shares

Own Nearmap shares? Here’s how much cash the company has up its sleeves

This ASX tech share boasts a "very strong balance sheet".

Read more »

two women stand at a computer smiling in a large factory with high shelves piled with goods, as though working in logistics.
Technology Shares

Behind the ASX share: What makes WiseTech tick?

Here's a breakdown of the $12 billion tech company's business.

Read more »

Tabcorp share price merger Poker chips on a laptop keyboard to symbolise gambling on ASX shares
Technology Shares

Tyro share price sinks 20% to new record low, what’s going on?

Tyro has lost its CEO to Star...

Read more »

man using laptop happy at rising share price
Technology Shares

Here are 2 fantastic ASX tech shares that analysts rate as buys

Here are two tech shares that are highly rated...

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

These 2 ASX tech All Ords shares are hitting new 52-week lows today

Despite another good day for the All Ords, two ASX tech shares are going in reverse.

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Technology Shares

Novonix share price down 6% on Tuesday, what’s happening?

The Novonix share price has come under pressure on Tuesday...

Read more »

A young man in a blue suit sits on his work table cross-legged with his phone in his hand looking slightly crazed as he watches his ASX tech shares go down today
Technology Shares

Why are ASX tech shares struggling today?

What's going on with technology shares today?

Read more »

Rede arrow on a stock market chart going down.
Technology Shares

Why is the Life360 share price sinking 9% today?

Life360 shares are having a poor day on Tuesday...

Read more »