Shares of public-safety technology company Wrap Technologies (NASDAQ:WRAP) climbed higher on Thursday, after the company announced it's received new orders to purchase its BolaWraps. As of 2:45 p.m. EDT today, the stock was up 12% and climbing.
So far in 2020, Wrap Technologies has announced many such orders, both domestically and internationally. And these orders are driving the stock's market-beating returns this year.
The press release doesn't specify who purchased the BolaWraps. It only says the orders came from three countries in Asia, with one coming from a new country for Wrap. The first two sources of the orders have already tried the product (which fires a tether at suspects that restrains them) and are now expanding its use. The other order source will be trying it out.
All told, the three orders combine for 200 BolaWraps and 2,600 cartridges. That's a big order for a company the size of Wrap Technologies. For perspective, it's about what the company shipped internationally in the entire first quarter.
For Wrap Technologies to be a good stock long term, it needs many more deals like the ones it announced today. The company was only founded in 2016, so it's still in the very early stages of growth. Its sales and marketing expenses and its research and development budget far outpace the revenue it generates, which underscores the need to grow the top line.
The financials might not look great overnight. That's to be expected with a growth stock like Wrap Technologies. For now, shareholders should focus on the BolaWrap's rate of adoption. And today's news was encouraging on that front.