According to Verb Technology's 15-minute chart, a significant downward trend is evident, as indicated by the expanding Bollinger Bands and the appearance of a bearish Marubozu candle at 08/29/2025 12:15. This suggests that the market is currently dominated by sellers, who are driving the trend downwards, and that the bearish momentum is likely to persist.
Verb Technology Company Inc. (NASDAQ: VERB) has seen a significant downward trend in its stock price, as indicated by the expanding Bollinger Bands and the appearance of a bearish Marubozu candle on August 29, 2025, at 12:15. This technical analysis suggests that the market is currently dominated by sellers, driving the trend downwards, and that the bearish momentum is likely to persist.
The company has undergone a dramatic transformation, pivoting from a SaaS provider for interactive video-based sales tools to a focus on social commerce and digital asset management. Recently, Verb initiated a corporate treasury of Toncoin, the native cryptocurrency of The Open Network (TON) blockchain, which has become a significant driver of its stock price.
Verb's financial trajectory has been volatile, with revenue increasing from $895,000 in fiscal year 2024 to $1.3 million in the first quarter of 2025. However, the company's cash burn rate remains high, with $3.35 million burned in the second quarter of 2025. The company's primary revenue sources are MARKET.live, an omnichannel livestream shopping marketplace, and Go Fund Yourself, a platform that combines an interactive reality TV show with investment capabilities.
The company's TON Strategy initiative, which aims to accumulate over 5% of TON's circulating supply, has been a significant catalyst for the recent stock price movement. Verb's treasury assets exceed $713 million in TON, which is more than half of its market cap. The company plans to rebrand as Ton Strategy Company (TSC) to reflect its new direction.
However, the company's valuation remains a concern. At roughly $20 per share, Verb's market capitalization hovers around $1.25 billion. If we take the $780 million in the Treasury, we are left with a market cap of nearly half a billion. The company would have to grow revenues at a very high rate for many years to justify its current valuation.
The company faces significant risks, including execution risk in scaling MARKET.live and Go Fund Yourself, and heavy reliance on cryptocurrency markets. While Toncoin has shown rapid adoption, it remains volatile and subject to market fluctuations.
In conclusion, Verb Technology's stock price has seen a significant downward trend, driven by market sentiment and technical indicators. The company's TON Strategy initiative has been a significant catalyst for the recent stock price movement, but the company's valuation remains a concern. Investors should carefully consider the risks and potential long-term growth prospects before making investment decisions.
References:
[1] https://seekingalpha.com/article/4816238-verb-technology-better-to-buy-toncoin-than-verb-stock
Comments
No comments yet