MicroAlgo (MLGO) AI Stock Analysis

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MicroAlgo

(NASDAQ:MLGO)

Select Model

Rating:41Neutral

Price Target:$2.00▼(-2.44% Downside)

Action:reiterated

Date:11/06/26

MLGO's rating is heavily burdened by deteriorating operational fundamentals and a persistent technical downtrend. While its near debt-free balance sheet provides a crucial lifeline, ongoing cash burn, significant revenue declines, and negative earnings severely restrict its near-term viability.

Positive Factors

Low leverageVery low leverage and a sizable equity buffer provide financial flexibility through a weaker operating period. This reduces debt-service pressure and may leave the company better positioned to fund operations or pursue opportunities without relying heavily on additional borrowing.

Negative Factors

Declining revenueMulti-year revenue contraction weakens the foundation for sustained earnings growth and suggests that demand, customer expansion, or execution has not been consistently strong. Continued top-line pressure can reduce operating leverage, constrain investment capacity, and make a return to profitability more difficult.

MicroAlgo (MLGO) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $23.31M
Dividend Yield: ―
Average Volume (3M): 38.59K
Price to Earnings (P/E): -1.2
Beta (1Y): -3.47
Revenue Growth: -11.52%
EPS Growth: -123.66%
Country: US
Employees: 71
Sector: Technology
Sector Strength: 61
Industry: Software - Infrastructure

MicroAlgo Business Overview & Revenue Model

Company Description

MicroAlgo Inc. specializes in crafting and delivering sophisticated central processing algorithm solutions for clients in various sectors, including online advertising, gaming, and smart chip manufacturing, across the People's Republic of China and g...

How the Company Makes Money

Publicly available, company-specific detail on MicroAlgo’s exact revenue model and revenue breakdown is limited in the provided context; as a result, a detailed, factual explanation of how the company makes money (including its key revenue streams, p...

MicroAlgo Financial Statement Overview

Summary

Despite a pristine balance sheet with minimal debt, the operational profile is severely challenged by persistent revenue contraction, negative profit margins, and a return to cash consumption.

Income Statement

25Negative

Balance Sheet

80Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	53.13M	60.05M	74.19M	81.72M	84.97M	82.04M
Gross Profit	13.76M	15.48M	21.07M	24.51M	18.48M	33.12M
EBITDA	590.51K	939.47K	2.94M	-18.38M	868.00K	12.82M
Net Income	-21.93M	16.21M	5.29M	-37.79M	-6.79M	8.57M
Balance Sheet
Total Assets	324.44M	350.35M	176.28M	57.96M	72.09M	81.63M
Cash, Cash Equivalents and Short-Term Investments	307.89M	336.77M	164.92M	47.39M	42.75M	42.73M
Total Debt	4.56M	4.38M	23.04M	1.95M	181.42K	322.72K
Total Liabilities	19.38M	15.58M	28.88M	12.05M	5.08M	22.97M
Stockholders Equity	299.63M	330.33M	144.95M	45.38M	66.76M	58.41M
Cash Flow
Free Cash Flow	-833.18K	2.48M	4.07M	-6.41M	1.79M	15.27M
Operating Cash Flow	-832.02K	2.48M	4.08M	-6.41M	1.96M	15.30M
Investing Cash Flow	-69.68M	-244.27M	-17.34M	-2.36M	2.76M	-6.56M
Financing Cash Flow	398.38K	310.80M	112.55M	10.81M	-2.42M	-3.85M

MicroAlgo Technical Analysis

Technical Analysis SentimentNegative

Last Price2.05

Price Trends

50DMA2.95Negative

100DMA3.53Negative

200DMA3.85Negative

Market Momentum

MACD-0.23Positive

RSI27.93Positive

STOCH13.44Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLGO, the sentiment is Negative. The current price of 2.05 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.95, and below the 200-day MA of 3.85, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 27.93 is Positive, neither overbought nor oversold. The STOCH value of 13.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLGO.

MicroAlgo Risk Analysis

MicroAlgo disclosed 17 risk factors in its most recent earnings report. MicroAlgo reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

MicroAlgo Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MLGO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALAB	76Outperform	$39.81B	82.77	28.03%	―	115.24%	122.63%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPAI	54Neutral	$10.96M	-7.93	-7.30%	―	―	―
AISP	51Neutral	$57.51M	1.80	-549.54%	―	92.81%	―
ZENA	42Neutral	$126.16M	-0.42	-118.17%	―	530.37%	-198.37%
MLGO	41Neutral	$26.49M	-1.16	-7.01%	―	-11.52%	-123.66%
ARAI	39Underperform	$2.95M	-0.06	-730.42%	―	―	―

* Technology Sector Average

Performance Comparison

MLGO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MLGO	Microalgo, Inc.	2.05	-4.46	-68.51%
AISP	Airship Ai Holdings Inc	1.60	-1.37	-46.13%
HPAI	Helport Ai Limited	0.27	-2.38	-89.74%
ALAB	Astera Labs, Inc.	221.83	80.44	56.89%
ZENA	ZenaTech, Inc.	0.59	-2.71	-81.97%
ARAI	Arrive AI Inc.	2.25	-161.43	-98.63%

MicroAlgo Corporate Events

MicroAlgo Files H1 2026 Unaudited Results and SEC Form 6-K

Aug 28, 2026

On August 28, 2026, MicroAlgo Inc. filed a Form 6-K with the U.S. Securities and Exchange Commission, furnishing unaudited interim condensed consolidated financial statements for the six months ended June 30, 2026. The filing also included management...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 06, 2026

MicroAlgo AI Stock Analysis