Important note

This AI stock analysis for 1847 Holdings is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

1847 Holdings - AI Stock Analysis

Analysis generated May 13, 2024

The company in discussion, 1847 Holdings LLC, is a unique entity that seeks to bring the investment model of private equity to small business operations. It essentially aims to provide a platform for small business owners to access capital and operational support more commonly available to larger enterprises, potentially offering significant growth prospects balanced with entrepreneurial autonomy.

Fundamental Analysis

Analyzing the fundamentals reveals mixed signals. On the positive side, revenue for the last quarter was $15M, marking an impressive 59.19% increase compared to the same quarter last year. This year-over-year growth suggests that the company has been expanding its footprint effectively. However, this growth narrative is clouded by the 19.54% decrease in revenue from the previous quarter, a sign that operations might have faced headwinds or cyclicality challenges recently.

Net income, a crucial determinant of a company's profitability, stands at a concerning $22M for the last quarter. This figure shows a substantial 269.21% decrease from the previous quarter, an alarming dive. The annual perspective exacerbates the worry with a 324.55% net income reduction from the same quarter of the previous year, indicating possible inefficiencies or increased costs that have outpaced revenue growth.

The EBITDA figure of $19M signals a staggering drop of 19,657.02% from the previous quarter and diminishes further with a 388.50% decrease year-over-year. Such a drastic decay points towards potential operational issues or significant shifts in the company's business environment.

Technical Analysis

Technical indicators demonstrate a bearish trend for 1847 Holdings. The current stock price at $1.60 has tumbled 31.91% from a month ago and has plummeted 97.09% from last year, potentially pointing to a loss of investor confidence or a recalibration of the company's valuation in the market. The Simple Moving Average (SMA10) stands at $2.38, which is lower than the previous SMA10 at $2.48, solidifying the notion of a downward price movement. From an RSI perspective, a reading at 36.5 hovers close to the oversold threshold but still resides in a neutral zone, offering no definitive position for the direction of stock price momentum.

Alternative Data Analysis

The alternative data surrounding job postings and employee sentiment can be crucial for an investor's understanding of potential growth and internal company dynamics. However, as there is no specific data provided in this prompt, it would be speculative to make any judgment on these aspects. Similarly, customer acquisition and engagement metrics are pivotal for assessing market penetration and the resonance of the company's products or services, but again, without concrete data, one can only surmise their impact on the stock.

Conclusion and Recommendation

The analysis of 1847 Holdings paints a concerning picture marked with sharp declines in both quarterly revenue and net income, while EBITDA erosion raises flags about the company's operational strengths. The technical analysis fortifies the bearish sentiment, further darkened by the precipitous fall in stock price over the last year.

Without contrary indicators from the alternative data available (job postings, employee sentiment, customer acquisition, engagement metrics), a definitive bright spot is hard to pinpoint. It's important for potential investors to realize that investment in this stock may carry significant risk. Caution should be exercised, and a thorough assessment of the company's strategy to counter the evident financial and operational hurdles is warranted. In light of the information provided and without further positive alternative data insights, it may be prudent to hold off from investing in 1847 Holdings until clearer signs of stabilization and growth emerge.