Facedrive (TSXV:FD)(OTCQX: FDVRF) stock is seemingly preparing for a big rally again after seeing a massive sell-off in the previous couple of weeks. The stock has risen by more than 16% this week so far. These sharp gains came after the stock nosedived and lost 53% in the previous couple of weeks combined amid the recent tech sector sell-off. Let’s take a closer look at some key recent updates and find out why it could be readying for another big rally.
Facedrive: latest updates
Facedrive is a Scarborough, Ontario-based ridesharing company. Its app allows users to hail a ride in electric and hybrid cars apart from traditional gasoline vehicles. In addition to its focus on expanding its ridesharing services globally, its management is also focusing on other business verticals like Facedrive Marketplace, Facedrive Foods, Facedrive Social, and Facedrive Health.
On February 25, the company revealed that its Facedrive Foods vertical is continuing to see exponential growth. It’s delivering more than 4,500 meals per day with the help of about 4,650 restaurant partners. Its food delivery platform currently has more than 260,000 active users in 19 cities across Canada. Keeping its long-term business expansion goals in mind, it recently started providing grocery delivery services to customers.
Global expansion plans and focus on EVs
You might already be aware of how the valuations of larger ridesharing companies like Uber, Lyft, and Didi have skyrocketed in recent years. While Facedrive is seemingly following a very similar business model, its focus on becoming an eco-friendly network gives it an edge over the competition. After gaining a big market share in its home market, the company is looking to expand its footprints in the United States and Europe next.
In line with its “people-and-planet first” approach, Facedrive launched Steer — its electric vehicle (EV) subscription service platform in Toronto last month. This launch came a few months after Facedrive acquired Steer — a Washington DC-based vehicle subscription firm in September 2020.
Why buy Facedrive stock?
If you followed the recent massive business growth of EV companies like Tesla and NIO, you’d agree that consumers’ fast-growing interest in electric and autonomous vehicles is revolutionizing the auto industry. That’s the reason why many large tech companies like BlackBerry (TSX:BB)(NYSE:BB) and Apple are preparing to take advantage of this revolution. Many experts expect the iPhone maker to launch an Apple-branded electric and autonomous car in the coming years.
Similarly, the Canadian enterprise software company BlackBerry has recently raised its bets on the upcoming EV revolution. It’s developing integrated data platforms and other solutions to improve the functionality and safety of tomorrow’s EVs and self-driving cars. The company has recently partnered with tech giants like Baidu and Amazon Web Services to develop these tech solutions for carmakers. These factors could be responsible for BB stock’s solid 60% year-to-date gains.
Companies like Facedrive have the potential to take the EV revolution to the next stage by offering electric cars-based subscriptions and ridesharing services. In the coming years, it could also benefit from consumers’ fast-changing vehicle ownership pattern as it expands its presence in other larger markets like the U.S. and Europe.
Foolish takeaway
If you invest in a small business at the right time with the potential to grow multifold in the coming years, it could help you make a fortune in the long-term. That’s why I find Facedrive stock really appealing for long-term investors who want to get extraordinary returns buying cheap stocks. A recent more than 50% correction in its stock could be an opportunity for long-term investors to buy now.
