This Growth Stock Just Collapsed! (Alarum Technologies)

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Alarum Technologies stock analysis. Ticker: $ALAR
This high growth tech stock just collapsed. Micro cap Alarum Technologies sells software that collects data from websites. The stock went up 10x in just 7 months but shares have come crashing back to earth after the company’s second quarter results.
At the latest price, Alarum now has a market cap of 93 million dollars. With 21 million of cash on the balance sheet, the enterprise value is just 71 million. Alarum’s key software product NetNut provides IP proxy addresses which allow customers to scrape data from public-facing websites. This is useful for businesses who want to access data that is not always available to them. One common use is for e-commerce companies to “scrape” competitor websites to find popular products or to adjust their pricing strategies.
And NetNut has been growing like a weed. Revenues have grown from just 3 million in 2019 to over 30 million over the past 12 months. The introduction of generative AI and a move into analytical products could help Alarum dramatically expand its total addressable market and build a much bigger company. At just 23 times earnings and 6.6 times EBITDA that growth is no longer priced in which means the stock can easily produce huge returns if Netnut continues to grow.
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