CNVS Stock Surged 20% Today, Breaching 100-DMA For First Time Since August – Here’s What Triggered The Rally

• Cineverse will add IndiCue’s solutions to the Matchpoint platform, which helps studios distribute and monetize content across multiple streaming sites.
• The company expects the acquisition to boost its financial performance, with fiscal 2027 revenue forecast between $115 million and $120 million.
• Earlier this week, Cineverse priced its $3 million public offering of 1.5 million Class A shares at $2 per share.

Shares of Cineverse Corp. (CNVS) shot up 20% on Friday, after the company announced the acquisition of ad-tech firm IndiCue for a total consideration of up to $40 million.

The rally took CNVS stock past its 100-day moving average (100-DMA) for the first time since Aug. 29, 2025.

Acquisition Will Enhance Cineverse’s AI-Powered Supply Chain Platform

Cineverse will add IndiCue’s solutions to its AI-powered Matchpoint platform, which helps studios distribute and monetize their content across multiple streaming platforms. The combined platform will offer real-time analytics, automated workflows, and better ad placement. The company also plans to develop new ad-tech tools and advanced data capabilities following the acquisition.

“With IndiCue, Matchpoint becomes a closed loop: distribution, data, and monetization working together as a single system,” said Erick Opeka, President and Chief Strategy Officer of Cineverse.

Cineverse financed the acquisition with a mix of cash, deferred payments, and performance-based earnouts worth up to $40 million, including $22 million upfront and up to $18 million tied to future milestones. The company also raised $13 million in convertible notes to help fund the deal.

IndiCue Addition To Boost Earnings From 2027

The acquisition is expected to strengthen Cineverse’s financial profile. The company expects fiscal 2027 revenue between $115 million and $120 million, while adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) are forecast between $10 million and $20 million. For reference, Cineverse reported a consolidated revenue of $78.2 million in FY2025.

IndiCue is anticipated to generate about $38 million in annualized revenue in fiscal 2027.

On Thursday, Cineverse priced its $3 million public offering of 1.5 million Class A shares at $2 per share. The underwriter also holds a 30-day option to buy up to 225,000 additional shares, and the transaction is scheduled to close on February 17.

How Did Stocktwits Users React?

Retail sentiment flipped to ‘bullish’ from ‘bearish’ a day earlier, amid ‘high’ message volumes.

One user expects the deal to propel Cineverse’s market capitalization to $500 million in 24 months, more than 10 times the current market cap of around $48 million, according to Koyfin data.

Another user expects “huge” revenues in the coming times.

The stock has gained around 20% so far this year.

Read also: ONDS Stock Has Lost Nearly 34% In A Month – But It’s Raining Contracts And Retail’s Paying Attention

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