After a difficult month of mostly trending downward, ShiftPixy (PIXY) is soaring today on news of a recent acquisition. The staffing company has announced the purchase of TurboScale, a GPU cloud computing company. The deal is a $150 million transaction, consisting of $75 million worth of stock and an additional $75 in debt.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
This decision reflects ShiftPixy’s focus on enhancing its operations through artificial intelligence (AI). PIXY stock’s performance today suggests that the market is happy with the company’s decision.
What’s Happening with Shift Pixy Stock?
ShiftPixy may have lost some of its early trading momentum but it has still performed extremely well today. As of this writing, PIXY stock is up 80% after previously rising by more than 90%. This follows a long period of decline, during which time shares had fallen more than 90%.
This momentum makes sense, as the acquisition means ShiftPixy will be able to offer investors valuable exposure to the booming AI market. TurboScale specializes in AI model deployment and scaling GPU cloud infrastructure. The company offers “cost-efficient, highly configurable virtual machines and private cloud solutions,” which Shift Pixy likely sees as a means of optimizing its operations.
In a recent company statement, TurboScale CEO Chandler Song discussed the deal’s benefits, noting that “the two companies plan to build training and inference infrastructure for vertical AIs that include HR, Sales, Customer Services, and many more.”
What Is the Stock Price Forecast for ShiftPixy?
Wall Street hasn’t issued any price predictions for ShiftPixy stock nor given any ratings. This is likely because the struggling company is treated as a meme stock. As noted, PIXY stock hasn’t experienced much growth lately. While the company announced a one-for-fifteen reverse stock split earlier this month, it did not spur any momentum.
The TurboScale acquisition could make ShiftPixy appealing to traders who don’t mind some risk, as the company now offers more AI exposure. But given how much PIXY stock has struggled lately, it will likely be difficult for most investors to be optimistic about a turnaround.
