Is Nyiax Inc. IPO a Good Investment?

• Although the COVID-19 pandemic significantly disrupted the economy, this fact alone won’t stop businesses in competing for whatever consumer dollars are available.
• Because competition is so stiff, advertising technology (adtech) solutions will likely grow in relevance, benefitting upstarts in this exciting field.
• At the same time, investors will need to conduct due diligence as economic conditions can also impose unexpected consequences on the advertising arena.

While social critics may blast the continued integration of digitalization in everyday life, the harsh reality is that this genie will likely never go back into its bottle. From newspapers to consumer goods to now even cars and homes, an increasing number of households have found online transactions to be far quicker and more convenient than their underlying analog counterparts. In turn, the advertising world has also seen positive digital disruptions, thus favoring upstart Nyiax Inc.

Specializing in advanced advertising technology (adtech) solutions, Nyiax is part of a $438 billion industry, according to information from GlobalData. Thanks to digitalized applications and the rise of connectivity protocols, companies seeking to market their products to potential customers have never enjoyed greater control. In short, the advertising paradigm shifted from a spray-and-pray procedure to a laser-guided methodology, targeting all manner of detailed demographic data.

However, as Nyiax points out, while the adtech industry has sparked extraordinary engagement protocols, the ecosystem leaves many areas unaddressed. Specifically, the direct advertising process remains surprisingly manual, with media sellers engaging with media buyers through non-automated methods, such as contract negotiations and execution occurring via fax, email or post mail. Such mechanisms are cumbersome, lengthy and vulnerable to tracking and reconciliation issues.

But that’s where Nyiax enters the frame, leveraging modern digitalization solutions – in particular, the blockchain – to automate the unwieldy aspects of the advertising ecosystem, thus maximizing efficiencies for all parties involved. Here are the key points to consider for its upcoming new public market listing.

What does Nyiax do?

An adtech solutions provider, Nyiax seeks to disrupt the advertising ecosystem the way that financial technology (fintech) platforms radically changed the money business, delivering simultaneously the power of traditional analog platforms and the conveniences of digitalization. In this manner, Nyiax can help bring the advertising ecosystem up to speed with other innovations.

Founded in 2012, Nyiax’s business model is focused on the development of an advertising marketplace, whereby ad inventory, campaigns and audiences can be listed and sold via media sellers. This category includes content publishers — websites, magazines, billboards, network TV, mobile or desktop applications — and supply or sell side platforms (SSPs), such as technology platforms enabling web publishers.

While Nyiax has many competitors in the adtech industry, the company will rely on its core advantages, which include these attributes.

• Blockchain: A decentralized distributed ledger, blockchain technology’s profoundest innovation is its ability to foster secure transactions under a “trustless” mechanism without the use of a human intermediary. Under this advanced protocol, two parties that don’t know each other can nevertheless conduct business, forming the basis for Nyiax’s automation platform.
• Friction reduction: Because of the decentralized mechanisms undergirding the blockchain, Nyiax essentially acts as an automated third party between media buyers and sellers. Without a human-run enterprise acting as the middleman, parties to an advertising contract can deal between themselves, reducing costs and enhancing conveniences.
• Planning and discovery: With every layer of digital advertising protocols heavily quantified and analyzed, it’s never been easier for media buyers — advertisers or advertising agencies — to understand the probable return on investment (ROI) of their acquired campaigns or initiatives. Further, the Nyiax platform features a transparent supply chain, ensuring proper ad execution and the mitigation of potential fraud.

Finally, Nyiax isn’t just a purely aspirational business, with the company securing partnerships with household names such as Rolling Stone magazine and Nexstar Media Group Inc. (NASDAQ: NXST).

When is the Nyiax IPO Date?

After a rocky start to the year followed by an intense geopolitical crisis, market sentiment for the initial public offering (IPO) — or the first time a private enterprise distributes its equity shares to retail investors — has steadily risen, though it’s nowhere near the enthusiasm witnessed during 2020 and 2021.

Naturally, the slow backdrop is one factor to consider before participating in Nyiax’s new listing. The adtech firm has only recently filed its Form S-1 disclosure with the U.S. Securities and Exchange Commission (SEC). Therefore, no date has yet been set for the IPO calendar. On the positive front, prospective investors have some time to decide whether Nyiax is right for their portfolio.

Based on the details of the S-1 disclosure, the company revealed that it plans to raise a total of $20 million through the distribution of 4.4 million shares. The expected per-share price range is between $4 and $5. At the midpoint of this spectrum, Nyiax would command a market value of $74 million.

Appropriately, Nyiax intends to list its shares in the technology-centric Nasdaq exchange under the ticker symbol NYX. Boustead Securities represents the sole bookrunner for the IPO.

That Nyiax is even entering the public sphere at all is encouraging enough. These days, the ledger for new listings has looked awfully barren. In turn, the lack of companies going public may help NYX stock from a cynical competition standpoint.

However, it’s important to note that the lack of IPOs is congruent with general pessimism in the equities sphere. Heading into the week beginning Jan. 6, the benchmark S&P 500 index was down 14% on a year-to-date basis while the Nasdaq had dropped 24% during the same period. Both performance metrics contrast conspicuously with the broader positive sentiment seen last year.

Therefore, investors will want to conduct due diligence both for Nyiax as a business unit and the adtech industry as a whole.

What Analysts are Saying About Nyiax IPO

As a small company yet to list publicly, Wall Street analysts have not yet weighed in on NYX stock. Geared more as a high-risk, high-reward opportunity, the upside potential for Nyiax must be balanced with the recognition that the adtech firm is likely to incur volatility, particularly during its early days as a public entity.

On the optimistic side of the spectrum, the advertising industry has become incredibly lucrative. Digitalization protocols enable businesses to pinpoint their ad campaigns to prospective customers that are more likely to engage with the marketed content and in turn become sources of revenue.

The beauty of Nyiax’s platform is that it enables media sellers and buyers to trade future advertising contracts and agreements quickly and securely. Since Nyiax uses distributed ledgers and smart contracts rather than human intermediaries — who are prone to error and require concessions such as salaries and vacation time — the company can pass on savings to its clients, making it a formidable force in the adtech arena.

However, investors considering NYX stock need to be extremely careful. For one thing, Nyiax would be considered a micro-capitalization stock, which is subject substantially to the whims of the market. As well, should the company fall out of favor, a lack of volume may impede profitability.

Further, investors should consult the “risk factors” section of Nyiax’s S-1 disclosure for a detailed list of what could go wrong. One particular item you should be aware of is that the company has been impacted by Russia’s invasion of Ukraine. The subsequent U.S.-led sanctions on the aggressor nation limits Nyiax’s ability to transact with its developer, which has employees in Russia.

Nyiax Financial History

Although it wouldn’t be fair to classify Nyiax as an aspirational IPO, it has no positive earnings history, making it an incredibly difficult company to assess. True, in the year ended March 31, 2022, the adtech firm generated revenue of $485,065 whereas in the year prior, it produced zero sales. However, the net loss in the most recent fiscal year was a staggering $3.65 million.

Challenges also exist in the balance sheet. As of the latest snapshot, total assets measure $5.82 million, whereas total liabilities amount to $11.2 million. In short, practice careful money management if you want to participate in NYX stock.

Nyiax Potential

One of the main benefits of Nyiax’s business model is that in some limited fashion, it enjoys economic insulation. No matter what happens next, whether a recession or a renaissance, companies will compete with each other. Indeed, if consumer dollars are dwindling, the competition will likely be fiercer, implying robust demand for Nyiax’s adtech solutions.

However, as the poor earnings reports by Walmart Inc. (NYSE: WMT) and Target Corp. (NYSE: TGT) have demonstrated, the consumer economy may be pivoting away from the acquisition of physical goods to experience-based purchases such as vacation packages. If so, this dynamic could limit revenue-generating opportunities for Nyiax, imposing pressures on NYX stock.

Where to Buy Nyiax IPO Stock

If you want to participate in Nyiax’s IPO, you’ll need to know how to buy stocks. But before you take that step, you must sign up for a brokerage account. Below is a list of best brokers to consider.

NYX Restrictions for Retail Investors

Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t engage if you have privileged information.

NYX Pre-IPO

Although no pre-IPO opportunities have been announced yet, investors can check platforms like SoFi Invest for possible updates.