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Key Developments and Strategic Moves

Matt MonacoAvatar
Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 9/13/2025, 9:16 am ET 9/13/2025, 9:16 am ET | 6 min 6 min read
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Allied Gaming & Entertainment Inc. stocks have been trading up by 61.33 percent amid promising industry developments boosting investor confidence.

Media industry expert:

Analyst sentiment – neutral

Market Position & Fundamentals: Allied Gaming & Entertainment (AGAE) presents a challenging financial landscape, evident in its alarming negative profit margins—EBIT margin at -327.1% and EBITDA margin at -308%. Despite a strong gross margin of 102%, the company’s revenue of $9.08 million fails to offset its losses, with a net income from continuing operations at -$4.83 million. AGAE’s valuation metrics suggest an undervaluation, as indicated by a low price-to-book ratio of 0.6 and a negative enterprise value of $21.5 million. While the current ratio of 2.1 implies short-term liquidity strength, the overall financial health remains precarious due to high operating costs and unprofitability.

Technical Analysis & Trading Strategy: Recently, AGAE’s weekly price action indicates high volatility, with prices ranging significantly from a low of $0.8751 to a high of $1.55. A notable bullish sentiment is observed on the final trading day at $1.4699, triggered possibly by strategic news. Volume patterns suggest a potential buying interest at lower levels, reinforcing support around $0.95. Given the upward momentum and the break above $1.29, traders should consider a bullish strategy with an entry around $1.35, targeting near the resistance at $1.55, while placing stop-loss orders below $1.20 to mitigate downside risks.

Catalysts & Outlook: AGAE’s announcement of cryptocurrency investments, combined with legal victories related to proxy contests, marks a strategic pivot towards technological integration. These actions, along with successful mitigation of proxy-related disruptions, could drive future value. The recent 79% surge in share price post-crypto investment announcement highlights positive investor sentiment. Despite challenges in revenue and earnings, AGAE gains traction in aligning with innovative trends in blockchain and Web3 technology. However, the media sector faces hurdles, and AGAE must continue navigating operational inefficiencies. Key support and resistance lie at $1.20 and $1.55, respectively, providing critical levels to watch.

  • The company embarks on its first significant foray into the cryptocurrency market, announcing investments in Bitcoin and Ethereum. This move is poised to integrate cryptocurrency into its corporate treasury management strategy, marking a notable step towards leveraging blockchain and Web3 advancements.

  • Victory in the courtroom is evident as Allied secures preliminary relief against Knighted Pastures’ coordinated attempts to influence the board, emphasizing a favorable judicial stance towards Allied’s claims against wrongful conduct.

  • In its battle with Knighted Pastures, the federal court ruling in favor of Allied Gaming & Entertainment highlights potential success, marking an end to a proxy contest that allows the firm to concentrate on its growth strategy.

  • Despite a dip in earnings per share and a decrease in Q2 revenue, CEO Yangyang Li remains optimistic, championing strategic investments in iconic intellectual properties like Angry Birds 3, indicating a proactive approach to revitalizing the company’s market position.

Candlestick Chart

Weekly Update Sep 08 – Sep 12, 2025: On Saturday, September 13, 2025 Allied Gaming & Entertainment Inc. stock [NASDAQ: AGAE] is trending up by 61.33%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Allied Gaming & Entertainment has recently unveiled significant financial maneuvers as part of its strategic evolution. Exploring new market avenues, the company’s noteworthy crypto investments signal a dynamic pivot towards modernization and diversification, specifically through its adoption of Bitcoin and Ethereum. These initiatives align with Allied’s broader goal of positioning itself at the forefront of entertainment and technology convergence, propelled by the potentials of blockchain and decentralized finance.

On the performance front, the stock witnessed volatile trading patterns, as evidenced by the varied price ranges in recent sessions, surging to a high of $1.55. Despite facing challenges like reduced EPS, which plummeted to a (11c) loss, contrasting previous year figures, Allied demonstrates resilience. Its strategic direction is now keenly shifted towards capitalizing on blockchain’s intrinsic value, aiming for integration of real-world asset tokenization. This diversification into digital assets underpins Allied’s commitment to future-proof its operations in a rapidly evolving market landscape.

More Breaking News

Corporate financial health remains manageable with substantial liquidity, underlined by a robust cash position leading to strategic opportunities in capital investments. While negative profit margins elucidate operational setbacks, the pursuit of strategic asset acquisitions and enhancement of intellectual properties, notably Angry Birds 3, reiterates an agile adaptability to prevailing economic currents.

Conclusion

Allied Gaming & Entertainment stands at the convergence of traditional gaming paradigms and modern digital innovations, leveraging its investments in cryptocurrency to fortify its future trajectory. The recent moves encapsulate an ambitious pivot towards technological integration, positioned to usher in a new era of strategic growth amidst fluctuating market dynamics. As millionaire penny stock trader and teacher Tim Sykes, says, “Consistency is key in trading; don’t let emotions dictate your trades.” As Allied navigates these developmental pathways with calculated precision, adhering to strategic consistency in its trading endeavors promises significant trader attention and market discourse. The company’s potential to redefine entertainment and gaming through blockchain technology showcases its commitment to maintaining a steady course even amidst market volatility.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Matt Monaco

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
He is a diligent trader and teacher in his To The Moon Report blogs and Small Cap Rockets strategy webinars. He shows up every day, and expects his students to as well. Matt is fond of trading sketchy, volatile OTC stocks with profit potential. His favorite patterns are panic dip buys and breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”