Izea Inc. (NASDAQ:IZEA)
Izea Inc. (NASDAQ:IZEA) shares rallied 64.1% after the operator of a premier online marketplace launched a “first of its kind” service designed to help IZEAx clients distribute 3D assets to social media influencers. Dubbed Augmented Sponsorship the new service leverages ARKit technology in iOS 11 to simplify the placement of virtual 3D objects and animations in real-world environments.
The new service appears to have strengthened investor’s sentiments on Izea Inc. (NASDAQ:IZEA) as seen by the stock’s performance in recent trading sessions. Last week’s rally saw the stock rise to highs of $4 a share before it retreated to close the week at $3.20.
The rally helped reverse a downtrend that had engulfed the stock in recent months, plunging it to multi-year lows. IZEA is still trading in a downtrend and needs to close above $4 if an uptrend is to resume. It appears that the Augmented Sponsorship service could be the catalyst to revitalize the stock’s performance on Wall Street.
Izea Inc. (NASDAQ:IZEA) has already launched the service with the nations’ leading provider of transition services CORT. The service provider is to use the new technology to provide 3D models of furniture to social media influencers. By doing so, the influencers should be able to place virtual furniture in their home and in return, share their experience with their followers.
“Our platform provides dynamic targeting and delivery of 3D assets to individual influencers, enabling those influencers to place and manipulate virtual objects, and include them in their content creation process. This opens up a whole new way for Influencers to engage with brands and produce compelling sponsored visual content for their audiences,” said CEO Ted Murphy.
This is not the first time that Izea Inc. (NASDAQ:IZEA) has sought to leverage the power of influencers on social media when it comes to marketing. The premier online marketplace was the first to create a platform for sponsored blog posts, sponsored tweets as well as sponsored check-ins. Since 2016, the company has enabled over 3.5 million transactions between brands and creators.
The IZEAx platform allows Izea Inc. (NASDAQ:IZEA) to bring new content creation tools to influencers allowing them to popularize products that are difficult and expensive to market, such as furniture. The platform also opens up a wide a range of possibilities outside product placement.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.