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Zedge Stock Anticipates Market Shift Ahead of Earnings Announcement

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 12/14/2025, 11:07 am ET | 5 min
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Zedge Inc. Class B stocks have been trading up by 12.76% following positive earnings report and promising market forecasts.

Media industry expert:

Analyst sentiment – neutral

Zedge, Inc. (ZDGE) currently occupies a challenging market position illustrated by its negative profitability ratios, with an EBIT margin of -6.9% and a gross margin of 103%, indicating cost inefficiencies. The company’s revenue growth over five years stands at an impressive 21.63%, yet profitability remains elusive. Financial strength is moderate with a robust current ratio of 2.9, implying sufficient short-term liquidity. However, a negative return on equity (-4.52%) and significant retained losses (-$16.1 million) signal underwhelming shareholder returns. Despite positive free cash flow of $640,000 for Q1 2025, net income is undermined by high SG&A expenses, challenging sustainable profitability.

The technical analysis of Zedge’s stock reveals a dominant sideways trend with minor fluctuations. Recent weekly data suggests modest volatility within a tight range, with notable resistance at $2.83 and support levels around $2.43. The trading volume does not show significant anomalies, indicating a stable but unremarkable trading activity. A cautious strategy would involve buying on dips at or below the support level and taking profits near resistance around $2.74 to $2.83. Monitoring for any breakout above $2.83 might present further upside potential, contingent on accompanying volume spikes that confirm buyer interest.

As Zedge prepares for its upcoming earnings release and conference call on December 12, 2025, anticipation may affect stock volatility. The company’s performance must be critically evaluated against peers in the Media and Interactive Multi-Media sectors that often exhibit stronger financial metrics. With Zedge’s financial performance under strain from high operational costs and minimal profitability, any positive outlook is contingent on strategic pivots communicated in the earnings call. Resistance is observed near $3, with support firmly around $2.5. Without tangible improvements in financial outcomes or strategic initiatives, Zedge’s prospects remain neutral in the context of industry benchmarks.

Candlestick Chart

Weekly Update Dec 08 – Dec 12, 2025: On Sunday, December 14, 2025 Zedge Inc. Class B stock [NYSE American: ZDGE] is trending up by 12.76%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Delving into the financial metrics of Zedge, Inc., the company reported total revenue of $29.39M, with a price-to-sales ratio standing at 1.23. This figure illuminates Zedge’s valuation compared to its revenue. The volumetric price data indicates notable variability, as witnessed in the days leading up to December 12, with a high of $2.8 and a low of $2.43, indicating some volatility pre-earnings announcement. This fluctuation, coupled with a gross margin of 103%, showcases the company’s ability to manage costs effectively relative to its sales.

Moreover, the financial strength indicators reveal resilience, with a total debt to equity ratio at zero, signifying minimal leverage. This situation could position Zedge more favorably to weather financial headwinds. The firm’s current and quick ratios of 2.9 and 2.8, respectively, suggest adequate liquidity to cover short-term liabilities. Despite these strengths, profitability margins convey less favorable news, with operating margins in negative territory, which may concern potential investors focusing on income generation efficiency.

More Breaking News

The upcoming earnings release is set against this backdrop, and any deviation from expected financial performance could catalyze significant stock price movement. As the reports unfold, the focus will likely be on operating revenue enhancements and any updates in strategic business developments.

Conclusion

In anticipation of the upcoming financial disclosure by Zedge, Inc., market participants are poised for impactful shifts, driven by insights from both the earnings performance and strategic directions outlined by management. As millionaire penny stock trader and teacher Tim Sykes says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” With the stock displaying volatility amid the company’s mixed financial metrics, all eyes are on Zedge’s December 12 announcement. Traders should brace for possible swift movements in stock price, aligning their strategies with the outcomes of this anticipated corporate event, which is likely to significantly influence Zedge’s market positioning and valuation.

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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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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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 .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

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”

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