Guardforce AI Co., Ltd. (GFAI), a company that offers cash handling services, closed Monday’s regular trading session at $1.61 after sliding 6.94% during the day. In the premarket, however, the stock has bounced back, as it was trading at $1.78 after surging 10.56% when last checked.
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GFAI to Expand Application of Robotics Solutions
The significant climb by GFAI could be attributed to the expansion in applications of robotics solutions. Hours ago, Guardforce announced it had begun rolling out the extra features for Intelligent Cloud Platform powered robots. The company is of the view that the expansion would increase the application of its robots while alongside, would serve as a source of new revenue opportunities with advertisers.
What’s Up for Industrial Sector Stocks?
Industrial sector stocks, like GFAI, started gaining investor traction with the onset of 2022, as the economic situation of the US was recovering from the effects of the pandemic at a brisk pace. But during the last couple of months, factors like high-interest rates as well as inflation and supply chain-related issues have hindered the growth of the industrial sector. Specifically speaking, the stocks having similar or related domains as Guardforce were badly hit by the rising tide of inflation, as investors were expressing fears regarding the economic crisis in the foreseeable future.
What Could Change GFAI Fortunes?
Since its ADR listing in September, GFAI stock has been plummeting, largely owing to the weak fundamentals of the company. However, an increasing reliance upon technological innovations, just like the one announced recently, could serve to attract investors in the near term, leading to a change in fortunes for the stock, but this technological adoption has to be done swiftly.
Concluding Remarks
Looking ahead, the long term investment in GFAI stock would not yield hefty returns; the reason being increasing reliance upon the digital form of payments across the globe, however, Guardforce is heavily dependent on cash transactions. To turn the tide in its favour, GFAI also has to adapt to this changing environment.
