Shares of Phunware (NASDAQ: PHUN) made another big move on Monday, following up on huge volatility over the previous week. This time, another patent-related announcement moved the stock as much as 18.4% higher. By 12:35 p.m. EDT, Phunware’s shares had fallen back to a 7.7% gain.
Last week, Phunware’s stock soared due to the U.S. Patent and Trademark Office issuing a new patent, describing an extremely fine-grained location system that may help the company make a new kind of game. Today, Phunware announced a monetization partnership for its patent portfolio, adding moneymaking muscle to inventions like the pinpoint-accuracy location system. The company will work with patent-monetization specialist Endpoint IP to find other companies willing to pay for a license to use Phunware’s 16 patented technologies (and six pending patent applications).
It’s good to see Phunware taking steps toward a moneymaking business model, but we’re still talking about baby steps here. Endpoint IP isn’t exactly a household name, and it remains to be seen exactly how effective the firm’s license sales and enforcement services can be.
Give this partnership a couple of quarters to mature and start producing results. Phunware still looks more like a gambling chip than a serious investment.
10 stocks we like better than Phunware, Inc.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Phunware, Inc. wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 1, 2019