IZEA Stock Price: Triumphant trio of reasons for a further rally in IZEA Worldwide Inc amid coronavirus
|- IZEA may extend its gains amid insiders' buying of shares.
- The company may feel the impact of the return to pre-pandemic salaries.
- Influencers have a growing role amid mistrust in traditional media in coronavirus times.
IZEA Worldwide Inc has been having a wild ride in June – changing from a penny stock to one that leaped five-fold and sees ongoing extreme volatility. Can the Winter Park, Florida firm experience further gains. Shares closed at $1.87 on Monday, up some 8.72%. Markets shrugged off concerns about a second wave of coronavirus cases in the US.
Apart from growing sales for influences seeking fame and brands looking for awareness – including a Fortune 500 Customer – investors have three more reasons to favor the stock at this point.
IZEA stock forecast
1) Salaries are on the rise
IZEA Worldwide announced it is fully restoring employees' salaries to their pre-coronavirus levels from July. Earlier in the year, the firm slashed pay for all workers – including those serving on the Board of Directors – by 19-21%. The increase in pay shows the company has overcome the worst of the COVID-19 blow.
Ted Murphy, IZEA's CEO and founder said that the move is also a show of confidence and markets cheer it.
2) Insider buying
Another Murphy – President Edward Murphy, has also increased his stake by buying 7,500 at an average price of $6.14, more than triple the current worth. The moves by both Murphies also support sentiment.
3) Growing impact for influencers in coronavirus times:
Looking at the longer term, COVID-19 has caused confusion, with politicization making it harder to grasp what is going on and receive reliable information. With so many people unsure of what they see on their favorite news outlets – and the ones representing the other side – some move to sources of trust.
And with the rise of social media, influencers on Instagram, YouTube, TikTok, and various other veteran and younger new media firms are gaining attention. Brands are becoming more aware of the phenomenon but often lack the know-how of how to put their name out there.
IZEA seems to have the edge in bringing advertisers and influencers together – and investors seem to notice.
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