ShiftPixy jumps 25% on TurboScale acquisition for $150M

ShiftPixy (NASDAQ:PIXY) stock jumped 25% on Tuesday during after hour of trading as it announced plans to acquire TurboScale, an AI technology company, for a total of $150M.

The acquisition is structured as $75M in stock and $75M in debt, reflecting ShiftPixy's (PIXY) strategy to enhance its technological capabilities within the Gig Economy sector.

The acquisition aims to integrate TurboScale's advanced GPU cloud infrastructure and AI model deployment technologies into ShiftPixy's existing platform. Following the acquisition, ShiftPixy (PIXY) intends to launch new AI-powered tools by early 2025.

The completion of this acquisition is contingent upon the negotiation of agreements, and there is no guarantee that the acquisition will finalize. 

Seeking Alpha's quant rating system warns that the stock is at a high risk of performing badly due to decelerating momentum and inferior profitability.