Today, Alfi (NASDAQ:ALF) is once again seeing some intense volatility. Today’s move in ALF stock happens to be to the upside, with this stock surging more than 28% at the time of writing.
This move comes on very heavy volume, as the company made a big announcement today. Today’s announced expansion of its tablet rollout for ride-share providers is positive news for investors betting on this long-term growth play. Indeed, as an interactive artificial intelligence (AI) and machine-learning company, Alfi’s business model has been enticing to growth investors on its own. However, high-profile partnerships with ride-sharing companies Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) have ramped up the expectations for this small cap play.
Indeed, Alfi’s market cap currently sits at only $130 million at the time of writing. Investors betting on big growth over the long term have piled into such plays in the hopes of seeing outsized growth over the long haul. Today’s announcement appears to indicate a faster and more aggressive growth timeline for the company. Accordingly, investors are jumping aboard.
Let’s dive into some of the specifics of what was announced.
ALF Stock Higher on Additional Markets and Higher Guidance
Today, Alfi announced it has increased its tablet rollout to 14 major markets in the U.S. Additionally, the company expects to have 150,000 tablets rolled out in Uber and Lyft vehicles by the end of next year.
Those are some aggressive targets. Indeed, it appears investors in ALF stock had not factored this type of growth into their models. Accordingly, investors are banking on accelerated top- and bottom-line growth through next year on this news.
One of the key components of the aggressive tablet rollout is the fact that Alfi’s proprietary tablets have a five-minute setup time. The company’s commission metrics provide an alternative revenue source for drivers. This, Alfi hopes, will help accelerate the company’s integration efforts to as many vehicles as possible, in short order.
Uber and Lyft benefit from this deal in being able to tailor messages and campaigns to a specific target market. Accordingly, this is a win-win-win type of scenario that Alfi hopes will encourage rapid growth.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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