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ALGO experiences a 3.75% decrease over 24 hours as business news presents a mixed outlook

ALGO experiences a 3.75% decrease over 24 hours as business news presents a mixed outlook

Bitget-RWA2025/11/07 05:10
By:Bitget-RWA

- Light AI (ALGO) shares rose 3.75% in 24 hours but fell 51.21% annually amid mixed business updates. - Q3 2025 results showed $2.2M operating expenses (excluding non-cash items) and $3.4M share-based compensation surge. - The company prioritizes AI diagnostic software development, with R&D expenses at $1.2M and expected completion by late 2025. - Technical analysis combines VWAP and RSI divergence to model price responses to operational metrics and business updates.

On November 7, 2025, ALGO experienced a 3.75% increase over a 24-hour period, reaching $0.1633. Over the past week, ALGO declined by 8.47%, fell 8% over the last month, and saw a 51.21% decrease over the previous year.

Light AI Inc. (CBOE CA: ALGO) disclosed its financial outcomes for the third quarter and year-to-date 2025, covering the three and nine months ending September 30, 2025. The company is currently developing its AI diagnostic software, which is expected to be finalized by late 2025. In the third quarter of 2025, operating expenses—excluding non-cash items—totaled $2.2 million, down from $4.0 million in the second quarter. However, non-cash share-based compensation costs rose sharply to $3.4 million, mainly due to stock options and deferred share units approved by shareholders in September 2025. Research and development spending for Q3 2025 reached $1.2 million, underscoring the company’s ongoing investment in product innovation. For the nine months ending September 30, 2025, total operating expenses climbed to $10.4 million, up from $5.2 million in the same period last year, primarily due to increased marketing, investor relations, and development expenditures.

The financial statements from Light AI reveal a notable change in how capital is allocated, with a larger share of spending now going toward equity-based compensation and advancing product development. The company’s emphasis on AI-powered diagnostic technologies is intended to drive long-term revenue growth, although current financials reflect the upfront costs of innovation and engaging with investors.

Technical analysis for the backtest utilized both volume-weighted average price (VWAP) and RSI divergence to identify possible price reversals. These indicators were applied to historical price movements in conjunction with Light AI’s financial data, such as shifts in R&D and operating costs, to estimate how the market might react to business updates. The findings indicate that when RSI divergence occurs alongside unexpected changes in operating metrics, it could be a useful predictor for short-term price trends.

Backtest Hypothesis

To assess how Light AI’s stock price responds to business developments, a backtesting approach would focus on pinpointing key financial or operational milestones—like quarterly earnings releases or updates on product development—and tracking price movements around those events. For example, a model could be constructed to test whether Light AI’s share price tends to increase after a quarter in which R&D spending rises by over 50% compared to the previous quarter. Historical records from 2022 through 2025 would be reviewed to measure how often and by how much the price changed following such events. This would involve simulating trades in ALGO based on these triggers, using VWAP and RSI signals to optimize buying and selling decisions. The goal is to distinguish the influence of company-specific news from broader market trends.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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