MGO Global Inc. (NASDAQ:MGOL) shares are trading higher Tuesday after the company posted a year-over-year increase in its first-quarter financial results.
The Details:
MGO Global reported total revenues climbed 1385% to $670,264, up from $45,147 year-over-year, due primarily to the timing of the launch of the company's Stand Flagpole line of products, which did not occur until mid-March 2023.
The company reported losses of 1 cent per share, compared to losses of 8 cents per share from the same quarter last year.
"MGO started 2024 strong, highlighted by material revenue growth for our Stand Flagpole business, coupled with the assignment of the Messi Brand to Centric Brands, which resulted in a $2 million cash infusion and the elimination of the 2024 minimum royalty payments to LMM of €1,500,000," stated Maximiliano Ojeda, CEO of MGO.
"MGO is now concentrating on driving sustainable, long-term growth of Stand Flagpoles, while achieving material efficiencies in our day-to-day operations. Moreover, in the first quarter, we took aggressive actions to simplify our cost structure, reduce our headcount and implement a more sustainable business model – all of which we believe will help position MGO to achieve positive cash flow in the quarters ahead."
MGO Global focuses on the acquisition, optimization and monetization of consumer brands across multiple categories. The company has three reportable segments: The Messi Store, which sells a range of products under The Messi Brand, Stand Flagpoles which sells a range of residential flagpoles and related products direct to consumers and Corporate, which generates no revenue, but reflects corporate expenses related primarily to being a public company.
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Should I Sell My MGOL Stock?
Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
Shares of MGO Global have lost 5.36% year to date. This compares to the average annual return of -63.29%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. MGO Global stock currently has an RSI of 53.21, indicating neutral conditions.
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MGOL Price Action: According to Benzinga Pro, MGO Global shares are up 343% at $1.02 at the time of publication Tuesday.
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