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Tuesday, June 6, 2023

Data Storage Corp. (DTST) Stock Soared on Wednesday, Here’s the Reason

Data Storage Corp. (DTST), a company that provides multi-cloud information technology solutions, has declined 3.63% in aftermarket trading session. Consequently, DTST stock is trading at $3.98 at the time of the writing. The decline could be attributed to the profit-taking effect after the stock surged 33.23% during Wednesday’s regular trading session and closed the day at $4.13. The reason for the surge was a contract by the company.

Why DTST Surged?

On Wednesday, DTST announced that its wholly-owned subsidiary, namely Flagship Solutions Group, has been awarded a multi-million dollar contract with one of the leading and most recognized professional sports teams in the US. The agreement states that the company would provide a storage infrastructure that is modern and encrypted to support the team, its affiliates, and its stadium.

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Q3 2021 Operational Results

On 15th November, DTST released the operational results for the third quarter of the fiscal year 2021. The quarter ended on 30th September. The company generated net sales of $3.86 million during the quarter against $2.72 million for the same period of 2020. The gross profit for the three months stood at $1.69 million against $1.10 million for the same three-month period of 2020. The net income generated by the company during the quarter was $0.13 million against $41,935 for the same quarter of 2020.

Executive Commentary

 Chuck Piluso, CEO of DTST, while commenting on the results said that the company has continued to generate positive net income, while on the other hand, there is a continued investment in its future growth. The solid quarterly results reflect the new sales and marketing strategy, as well as the trajectory of continued growth that the company is following.  

Future Outlook for DTST

The last month has seen DTST stock increase by more than 35%. For analysts, the stock appears to be in a solid position to thrive upon this momentum in the upcoming time. Hence, potential investors should keep a close eye on the performance of the stock.

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