Qingdao, China-based SOS Limited is a high-tech company. In addition to providing big-data marketing solutions, it also has a hand in the cryptocurrency space and commodity trading. SOS Limited seeks to enable real-world applications for the blockchain.
The company’s data business is based in China. It harnesses data mining techniques through technology to spot trends and then makes recommendations to clients. Its crypto-mining operations are being established in the U.S. state of Wisconsin, representing another revenue stream. The SOS stock price has proven to be sensitive to the overall mood in the cryptocurrency markets, for better or for worse. SOS Limited is not currently profitable.
How do we estimate SOS will do in 2023?
SOS Limited is off to the races in 2023 so far. As a blockchain company, SOS Limited is likely benefiting from the makings of a potential bull market in cryptocurrencies. Early in 2023, SOS Limited has already seen its stock price more than double to over $8 per share.
As for a SOS stock forecast, the stock has traded in a range of $2.54 to $48.75 in the past 52 weeks. In what could be a positive year for cryptocurrencies, SOS stock is poised to benefit. The stock has been trading on solid volume and could certainly have more runway for gains. If it continues to trade on crypto hype, the stock could reclaim that lofty level of $48 per share but the gains are not likely to be sustainable for the long term.
Investors might want to keep in mind that in early 2022, SOS Limited was in danger of being kicked off the NYSE due to a weak stock price of less than $1 per share. Also, considering that SOS is based in China, it is vulnerable to any further COVID-related lockdowns that could affect the economy.
How do we estimate SOS will do in 2024?
The SOS stock forecast for 2024 could be bullish. This is due largely due to its cryptocurrency mining business. Even though crypto mining is a small part of SOS Limited’s overall revenue pie, the highs and lows in the crypto market influence the stock price. SOS is also in the process of relocating its crypto mining business to the state of Wisconsin, at which time its mining capacity should increase.
In 2024, leading cryptocurrency bitcoin has a major event that is historically bullish for crypto and therefore could see SOS stock increase. Bitcoin will undergo what is known as a halving event. This is when the rewards for bitcoin miners are cut in half, and it has proven to be bullish for bitcoin and related investments. As a result, SOS Limited could benefit from a bitcoin-related tailwind in 2024, particularly as it’s in the bitcoin mining business.
Crypto stocks have a tendency to rally beyond reason when bitcoin is trending. It is possible SOS stock will reclaim the $48 level it achieved in 2022.
How do we estimate SOS will do in 2025?
By 2025, the SOS stock forecast could potentially be positive. As of mid-2022, the company had $250 million of cash on its balance sheet, which is more than enough that it needs to fund operations and expand. However, SOS is not profitable and at last check (mid-2022) reported a GAAP net loss of $14.3 million. On the plus side, it has attractive margins of 9.3%. As a tech play, SOS also has high expenses.
By 2025, SOS Limited’s U.S. crypto mining facilities should be in full swing, which has the potential to deliver greater revenue to the company. SOS Limited needs it because in 2022 its half-year revenue declined to $132 million from $184 million due to COVID-related lockdowns in China.
Tech stocks are considered growth stocks and therefore tend to trade at high valuations when times are good. SOS is a bit trickier because it is dependent on conditions both in China and the U.S. and could potentially be hurt by geopolitical tensions.
How do we estimate SOS will do in 2030? 150 words
The SOS stock forecast for 2030 is a bit of a longshot. Much of its performance will depend on conditions not only in China but also the United States, not to mention the commodity and cryptocurrency markets.
Cryptocurrency regulation may have taken shape by then, and SOS Limited’s crypto mining operations may be affected one way or the other. The performance of the company’s commodities trading business in China will depend largely on where prices are at this time.
Assuming that bitcoin mining is a revenue maker for the company, this diversified portfolio stands to benefit SOS Limited in 2030. China’s economy is only expected to become more competitive in this decade, which could benefit the company’s data analytics and commodities trading businesses.
There are many variables that could affect the stock price in 2023 one way or another. If the company manages to swing back to a profit, this would be a positive for the SOS stock price.
SOS Limited competes with other crypto mining stocks, like Bitfarms, Northern Data and Core Scientific, to name a few.
SOS Limited has a diversified business model that ranges from data analytics to cryptocurrency mining. The stock has seen better days, but early signs suggest it could receive a tailwind from a potentially strong crypto market. If your risk/reward profile can tolerate it, SOS could be an interesting and potentially rewarding stock to own in 2023.
Yes, though it has operations in the U.S. The company’s revenue was hurt in 2022 by pandemic-fueled restrictions in China. This is an ongoing risk.
Data mining at 36%, followed by 63% from commodities trading and fractional amounts from cryptocurrency mining.