GOGO Stock Recovers 73% Since December: How Far Can It Go?

GOGO stock

GOGO stock has been showing solid momentum over the past week following Gogo Inc’s (NASDAQ:GOGO) announcement of preliminary financial results. Although GOGO stock has been trading well beyond its all-time high, it could face some headwinds in the future.

Near to 52-Week Highs

Since bottoming in December last year, GOGO stock has recovered 73%, and from current levels, the stock may double, thus establishing a new 52-week high. However, GOGO is selling for 87% less than what it did in late 2013 when it peaked, so a new all-time high is extremely unlikely.

So what’s happening with the company?

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GOGO has estimated revenue for the Q1 2019 to be between $197 million and $200 million, which will be 14% to 15% less compared to last year’s results and slightly shy of analysts’ target of $202 million. Although this doesn’t seem like plausible results, it nonetheless removed doubts that things could be worse. The financial year ended over two weeks ago, and thus the top-line range is likely to be accurate by May 9 when GOGO stock will officially report its complete quarterly results.

We will have to wait until then to see where the results will take the company’s stock.

Preliminary Results

The preliminary net loss in the pre-announced results ranges between $17 million and $20 million for the quarter, which is less than the $27.4 million loss recorded in the Q1 2018.

GOGO has been working on upgrading its fleet despite having an early lead in the niche. The new connections are faster and reliable, with close to 98% availability in December.

Although catalysts for growth are there, GOGO stock still remains an investor risk, and its losses are expected to continue up to 2022. GOGO’s revenue guidance for this year has indicated that the company expects a decline.

What do you think?

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Featured image: DepositPhotos @ minervastock