SuperCom (SPCB) Stock Is Extremely Volatile: What's Going On?

Shares of SuperCom Ltd. Ordinary Shares (NASDAQ:SPCB) plunged 25.9% to $5.87 on Monday morning, despite the company reporting record financial results for 2024. The stock on Monday was the top trending ticker on the social media platform StockTwits.

What To Know: The Israeli-based provider of e-Government, IoT and cybersecurity solutions posted a 4% revenue increase to $27.6 million, achieving its highest sales in seven years. Gross profit surged 31% to $13.4 million, and gross margins expanded nearly 10 percentage points to 48.4%.

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SuperCom reported net income of $661,000, marking its first full year of GAAP profitability since 2015, alongside record non-GAAP net income and EBITDA. The company credited its four-year transformation strategy for the improvements, which included revenue growth of 134% since 2020.

Recent contract wins across the U.S., Europe and Israel bolstered its expansion into new markets and strengthened its public safety solutions portfolio.

SuperCom also said the company reduced debt by 32% and raised over $16 million to support future growth. However, a larger-than-expected net loss in the fourth-quarter, driven by $2 million in one-time items, may have weighed heavily on investor sentiment.

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How To Buy SPCB Stock

By now you're likely curious about how to participate in the market for SuperCom – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, SPCB has a 52-week high of $18.95 and a 52-week low of $2.55.