Exela Technologies (NASDAQ:XELA) Stock Hovers Around $3: What To Do?
8:10 pm Wednesday, August 11th, 2021
Over the course of this year, many stocks have come into considerable focus among investors after they had been pumped to the skies by meme stock rallies and one such stock is that of Exela Technologies (NASDAQ:XELA). However, things are not looking particularly rose for Exela Technologies at this point in time.
The business process automation firm has a range of innovative initiatives and products in its pipeline but that is not the only factor when it comes to making an investment. There are certain red flags that might put off most investors and it is necessary to look into those as well. First of all, Exela Technologies has a high volume of debt in its books at this point.
In addition to that, its growth has been largely dormant, and last but not least the margins have been quite low as well. Most experts believe that those who hold the Exela stock at this point could consider selling it.
On the other hand, the meme stock rally that had taken the Exela stock to new heights is also showing signs of wearing off. Hence, there is the possibility of the stock sliding further over the course of the coming days. Moreover, the debt of as much as $1.63 billion at the end of the first quarter of the year is an indication of the troubles being faced by the company. Additionally, almost the entirety of its debts are due within two years and that makes matters even more difficult for Exela.
