Shares of IZEA Worldwide (NASDAQ:IZEA) pulled back today after the company released strong numbers for second-quarter bookings so far, but still underwhelmed investors after the company had promised on Twitter yesterday that it had “very exciting news to share.”
The stock tumbled after the announcement was made at 11 a.m., and finished the session down 12%.
In the press release, IZEA, which is a digital marketing firm focused on influencers, said that bookings in Managed Services, the segment that makes up the vast majority of its business, had already exceeded the total from second quarter 2020 in just the first two weeks of the current second quarter. That update is the latest sign that the company’s momentum is ramping up dramatically after it said that Managed Services bookings jumped 130% in the first quarter.
In an emotional live-streamed speech on Twitter, CEO Ted Murphy told of the dark depths the company was in a year ago when it asked employees to take a pay cut, and congratulated IZEA stakeholders for the dramatic comeback the company has staged, up to the skyrocketing growth in bookings it’s now experiencing. IZEA has launched a slew of new products, including Shake, a marketplace for hiring influencers, and those new platforms seem to be driving its growth. Additionally, Murphy said, among the new clients was a Fortune 500 manufacturing company, which had signed a multi-million-dollar agreement for software and services with IZEA.
Despite the good news, investors sold the stock in what seemed to be a buy-the-rumor/sell-the-news event as shares had jumped yesterday when the company teased the announcement. Other investors seemed to think the company had oversold the news as it made a similar announcement just last week.
IZEA stock has skyrocketed over the last year, up nearly 3,000% from a year ago, showing that investors who stuck with the stock have been rewarded handsomely. Along the way the company has attracted attention from day traders and growth investors, which has made the stock volatile.
Overall, today’s announcement is clearly a positive for the company, but such expectations may already be baked into the stock. Investors should expect to learn more about the company’s progress when it delivers its full first-quarter earnings report, likely in May.
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