Airspan Networks (AMEX: MIMO) Stock

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Contributor, Benzinga
April 25, 2022
Vol / Avg.- / -Mkt Cap-
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Representing the 5th generation of standardized broadband cellular network technologies, telecommunications firms initially began rolling out 5G infrastructure in limited areas worldwide in 2019. Unfortunately, the disruption of the COVID-19 pandemic temporarily put the brakes on network distribution. Nevertheless, as societies gradually acclimate to the new normal, 5G integration has once again picked up momentum.

Indeed, the current uptake of this latest broadband tech exceeds that of 4G integration, which launched in late 2010. As a result, businesses are scrambling to build out new infrastructure, aligning perfectly with telecom software and equipment specialist Airspan Networks’ stock offering.

When Did Airspan Networks IPO?

Airspan Networks IPO’s on August 13, 2021 under the ticker (AMEX: MIMO).

Airspan Networks Financial History

Central to Airspan Networks’ core ethos is the democratization of telecom technologies. Although 5G represents a breakthrough that can catapult innovations previously the exclusive realm of science fiction. From expanding the scope and scale of the internet to engineering smart city infrastructures, 5G undergirds these remarkable concepts via lightning quick and reliable network transmissions.

But to actualize the full potential of 5G, its user base must be able to interact with a host of entities without becoming encumbered with proprietary hardware and software requirements or limitations. To remedy such backlogs, Airspan focuses on cloud-native open radio access network (RAN) solutions. In short, open RAN refers to interfaces that support interoperation between different vendors’ telecom equipment.

For one thing, open RAN is cost effective as it prevents companies from suffering a permanent commitment to a particular networking protocol. Second, an open ecosystem fosters innovation as businesses concentrate on enhancing 5G-based capabilities rather than worrying about administrative constraints.

Better yet, Airspan has come a long way since its first IPO more than 21 years ago. In its 1st quarter of 2021 earnings report, management posted revenue of $45.9 million, a growth rate of 67% over the year-ago level. Further, gross profit came in at $20.9 million, representing a 42% lift from the $14.7 million the company posted in Q1 2020. Contributions from Airspan’s 5G, open RAN and fixed wireless access divisions sparked most of the growth.

To be fair, net loss in the most recent quarter totaled $13.5 million, which increased by $500,000 from the year-ago quarter. However, management focused on significantly cutting down debt to $221,000 from nearly $2.1 million in Q4 2020. Combined with the telecom’s high-profile client base that covers over 100 countries, Airspan stands poised to benefit from a massive technological wave.

One of the more distinct public market debuts over the last several years, Airspan Networks has a colorful history extended over 2 decades. Initially, the company went public at the height of the early 2000s era tech bubble, with a date on the IPO calendar of July 20, 2000. As an archived publication from CNN Money reported, on Airspan’s first trading session, shares skyrocketed 113%.

However, those heady days are a thing of the past. Following the implosion of the speculative fervor, Airspan Networks, contrary to its brand name, failed to get off the ground. With retail investors nursing their wounds, it took some time before bullish sentiment returned. When it did, the company suffered another rude awakening, this time from the 2008 financial crisis and the subsequent Great Recession.

The ultimate ignominy came in April 2009, when the Nasdaq delisted Airspan stock for failing to meet the exchange’s standards. Thereafter, the equity unit began trading on the over-the-counter market, enduring relative anonymity before becoming a reverse-merger target of New Beginnings Acquisition Corp., a special purpose acquisition company (SPAC) in March.

From the corporate disclosure, New Beginnings’ management team expected the IPO to bring in $166 million in net proceeds for the combined entity. As well, the blank-check firm revealed that Japanese multinational conglomerate SoftBank (OTCMKTS: SFTBY) and direct broadcast satellite provider Dish Network (NASDAQ: DISH) committed to invest $75 million in Airspan stock, with participation from other existing investors such as Oak Investment Partners and NEA.

Airspan Networks Potential

In the classic film Field of Dreams, the protagonist builds a baseball field in his Iowa farmland on a leap of faith that it will bring his community together. On this side of the silver screen, the 5G rollout operates in much the same way. But the key difference is that integration is more an inevitability than an act of personal belief.

According to telecom firm Ericsson (NASDAQ: ERIC), its Mobility Report stated that in 2020, 5G adoption hit 212 million users worldwide. By the end of this year, Ericsson forecasts 569 million users and in the following year, integration for the next-gen communications technology will exceed 1 billion users. And by 2026, over 3.35 billion people may be connected to 5G networks.

By capturing a sliver of this rapidly expanding industry, Airspan could easily expand its market capitalization, which currently sits at approximately $145 million. However, the company can do more than that. As societies eventually recover from the COVID-19 pandemic, multiple businesses will scramble to upgrade their telecom infrastructures. Through its open RAN innovations, Airspan can not only assist in 5G adoption, it can do so cost effectively.

Further, the company also specializes in small cell networks, enabling connectivity options for rural areas. Labeling the initiative “connecting the underconnected,” Airspan can transform underused locales into viable economic zones, thereby addressing the growing wealth gap in this nation and offering an indirect solution to runaway housing prices in major metropolitan areas.

How to Buy Airspan Networks (MIMO) Stock

If you know how to buy stocks, you can jump right in. If not, just follow the simple steps below.

Step 1: Pick a brokerage.

Thanks to rising competition and technical innovations, most online brokerages feature similar financial incentives such as commission-free trading. Therefore, you can focus your platform decision on factors that are important to you, such as convenience or access to derivative trading products.

Below is a list of best brokers to consider.

Step 2: Decide how many shares you want.

Though new stocks are exciting, they’re also volatile and unpredictable. To mitigate downside risk, exercise sound judgment in your share count. It’s best to go with a balanced number that affords you adequate rewards while limiting red ink should things go awry.

Step 3: Choose your order type.

Before placing your wager, make sure to understand the below market concepts.

  • Bid: The maximum price a buyer will offer, the bid is always lower than the ask.
  • Ask: The minimum price a seller will accept, the ask is always higher than the bid.
  • Spread: In addition to representing the bid-ask price difference, the spread also signals market liquidity and risk. Tighter spreads imply higher liquidity and lower risk, while the opposite is true for wider spreads.
  • Limit order: Use limit orders to request trades at specific prices. This approach offers price transparency but no execution guarantees.
  • Market order: On the other hand, market orders guarantee fulfillment but at the going rate, which may vary depending on conditions at the time of your order.
  • Stop-loss order: A protective mechanism for your holdings, a stop-loss order automatically exits your position at either a predetermined price or anything lower.
  • Stop-limit order: Conversely, stop-limit orders only execute at a predetermined price, eliminating exit rate ambiguities. However, such orders carry the same non-fulfillment risk as limit orders.

Step 4: Execute your trade. 

To execute a market order, follow these steps:

  1. Select your action type (buy or sell).
  2. Enter the shares you want to acquire (or sell).
  3. Hit the Buy (or Sell) button.

Follow the same sequence for limit orders (but include your execution price).

Setting the Groundwork for Tomorrow’s Innovations

For Airspan Networks, 5G is not just a means to an end. Rather, it represents critical infrastructure. Though concepts such as smart cities and connected transportation networks have long existed, prior telecom platforms were simply incapable of delivering the goods. That changes with 5G, which means the sky's the limit for those daring to take a shot with MIMO stock.

About Joshua Enomoto

His distinct writing style of distilling convoluted data into relatable and compelling narratives has earned him recognition among several investment-related publications.