Long Position on BAND @ $114.00 on 6/4/2020 (Momentum)

Bandwidth Inc. (BAND) operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States.

The company operates in two segments, CPaaS and Other.

Its platform enables enterprises to create, scale, and operate voice or text communications services across mobile application or connected device.

The company also provides SIP trunking, data resale, and hosted voice over Internet protocol services. It serves large enterprises, small and medium-sized businesses, technology companies, and other business.

Bandwidth reported a 1st Quarter March 2020 loss of $0.03 per share on revenue of $68.5 million. The consensus estimate was a loss of $0.19 per share on revenue of $63.1 million. Revenue grew 28.5% on a year-over-year basis.

The company said it expects second quarter non-GAAP results to range from a loss of $0.01 per share to earnings of $0.01 per share on revenue of $70.2 million to $70.7 million. The current consensus estimate is a loss of $0.08 per share on revenue of $65.1 million for the quarter ending June 30, 2020. The company also said it now expects 2020 results to range from a loss of $0.03 per share to earnings of $0.03 per share on revenue of $281.6 million to $283.1 million. The company's previous guidance was a loss of $0.27 to $0.17 per share on revenue of $272.7 million to $274.7 million and the current consensus estimate is a loss of $0.27 per share on revenue of $268.0 million for the year ending December 31, 2020.

The stock's bullish flag indicates higher prices should be forthcoming.

Entry point: $114.00

52-week trade range: $42.61 - $119.98

Stop/Loss: $109.25

Target Price: $125.50

Updates

6/15/2020 10:21:01 AM

BAND closed at $122.0

Position closed on 6/15/2020 at price of $122.00 with a 7.02% gain in 11 days.

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