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Pixel Works (NASDAQ:PXLW) are usually penny stocks that most people don’t talk about. But suddenly, Pixelworks caught the interest of many traders and its stock price skyrocketed. I typically look for buy-on-the-moment opportunities, and I’m bullish on PXLW stock because of some fresh and exciting news about the company.
Pixelworks provides content creation, video distribution, and display processing solutions. The company’s TrueCut Motion platform allows video creators to create crisp, visually stunning content. When it comes to video content, Pixelworks just signed a deal with a world-renowned entertainment company that will allow them to make great videos even better and generate significant returns for early investors.
Pixelworks’ big coup
If you are a video content specialist, the one and only Walt Disney (New York Stock Exchange:DIS)? I think the answer is no, but it’s certainly a major coup for Pixelworks to sign a deal with this entertainment industry giant.
Here’s the scoop. We’ve already mentioned his TrueCut Motion platform, which is Pixelworks’ flagship product. In a new announcement, Pixelworks revealed that it is collaborating with Disney to “bring you a collection of TrueCut Motion.”TM Grading titles for selecting home entertainment devices. ”
Unfortunately, the press release did not specify these titles. We hope to find out soon which movies, TV shows, and other titles will be processed by TrueCut Motion.
Apparently, the purpose is to improve the overall visual quality of these titles. Specifically, Pixelworks’ TrueCut Motion technology eliminates “motion playback anomalies” and improves video content’s “desired brightness levels” while “maintaining the look and feel of authentic cinematic motion of the source.” Helps maintain.
By the way, Pixelworks also looks pretty solid as a business, with or without the partnership with Disney. Pixelworks has an excellent track record of beating Wall Street’s quarterly EPS expectations, with the company’s Q3 2023 revenue increasing 18% sequentially to $16 million.
Is PXLW stock a buy, according to analysts?
At TipRanks, PXLW is rated a Moderate Buy, based on 2 Buy ratings assigned by analysts in the past three months. Pixel Works’ average price target is $14, suggesting an upside potential of 735.8%.
Bottom line: Should you consider PXLW stock?
Pixelworks’ stock price soared more than 60% today on news of its partnership with Disney, but ultimately fell. Still, the rally doesn’t have to end here. Pixelworks demonstrated sales growth and improved profitability even before partnering with Disney. Therefore, I am considering PXLW stock as a potential small-cap long position.
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