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PRSO stock touches 52-week low at $1.13 amid market challenges

Published 06/11/2024, 16:18
PRSO
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In a challenging market environment, shares of Peraso Inc. (NASDAQ:PRSO) have reached a 52-week low, trading at $1.13. The semiconductor company, which specializes in wireless technology solutions, has faced significant headwinds over the past year, reflected in the stock's performance. Investors have shown concern as the stock price plummeted, marking a stark contrast to its previous trends. The 1-year change data for MoSys , a similar company in the sector, underscores the industry's difficulties, with a staggering decline of 80.25%. This downturn highlights broader sectoral pressures that companies like Peraso are grappling with, as they navigate through a period of heightened volatility and shifting market dynamics.

In other recent news, Peraso Inc. has been making notable strides in its business operations. The company reported a significant Q2 2024 revenue of $4.2 million, indicating over 50% sequential growth and over 70% year-over-year growth. Despite reporting net losses on both GAAP and non-GAAP bases, Peraso maintains a substantial backlog of non-cancelable purchase orders and a growing pipeline of customer engagements for millimeter-wave solutions.

The company has secured a $1.4 million order from a South African wireless Internet service provider, validating Peraso's mmWave technology's efficacy. In addition, a significant purchase order for its DUNE platform has been secured from a Kenyan wireless Internet service provider, signaling a key advancement in the deployment of 60GHz technology in Africa. Further, Peraso has also secured an order for its High-Velocity Roaming technology aimed at enhancing internet connectivity in Korean public transportation systems.

These recent developments demonstrate Peraso's commitment to expanding its market reach and improving its product offerings. Analysts from Benchmark have maintained a Speculative Buy rating for Peraso, reflecting confidence in the company's business strategy and market position. The company has also extended the expiration date for its Series B warrants through an amendment with Equiniti Trust Company, LLC. These are the recent developments in Peraso's operations.

InvestingPro Insights

Peraso Inc.'s recent market performance aligns with the challenging environment described in the article. InvestingPro data reveals that the company's stock has taken a significant hit, with a 1-week price total return of -40.49% and a year-to-date return of -89.09%. These figures underscore the severity of the downturn mentioned in the article.

Two relevant InvestingPro Tips shed light on Peraso's financial situation. Firstly, the company is "quickly burning through cash," which could explain investor concerns and contribute to the stock's decline. Secondly, Peraso is "trading near 52-week low," corroborating the article's statement about the stock reaching a 52-week low of $1.13.

Additionally, InvestingPro data shows that Peraso's revenue for the last twelve months as of Q2 2024 was $13.37M USD, with a revenue growth of -8.55% over the same period. This negative growth aligns with the industry challenges mentioned in the article.

For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Peraso Inc., providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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