WidePoint has been chosen as the lone awardee of a crucial government contract for mobility services.
- WidePoint has secured the Department of Homeland Security’s Cellular Wireless Managed Services contract.
- The contract has a one-year base period, with the option to extend for up to nine more years, capped at roughly $3.1 billion.
- WidePoint has been a U.S. government contractor for over twenty years.
Shares of WidePoint Corporation (WYY) soared on Wednesday after the company secured a multibillion-dollar contract from the U.S. Department of Homeland Security (DHS).
At the time of writing, WYY stock was up 82% premarket and was the top percentage gainer on Stocktwits.
The company said it is the sole winner of the contract, which has a ceiling of more than $3 billion, from the U.S. government’s arm established after the events of 9/11 to oversee public security, counterterrorism, border control, cybersecurity, immigration enforcement, and disaster response.
The contract has a one-year base period and nine one-year option periods, under which it will deliver and manage a range of wireless mobility solutions, including device security, AI-driven data intelligence, mission-tailored networking equipment, and operational requirements across all branches of DHS.
WidePoint has been a U.S. government contractor for over twenty years, and the company highlighted that the latest contract is a clear indication of demand for its products, which is significantly larger than what it secured previously.
“Agencies within DHS are increasingly expanding their scope and integrating new solutions into our platform,” said Jason Holloway, Chief Revenue Officer of WidePoint. “This award establishes a strong foundation for WidePoint to further expand its role in managing secure communications and mobility services across the federal government.”
On Stocktwits, retail sentiment on WYY turned ‘extremely bullish’ from ‘bullish’ over the last 24 hours, amid ‘extremely high’ message volumes.
One user on the platform pointed out that even without the latest contract, WidePoint was on track to profitability in the cyber mobility space.
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Another user said WYY is a feasible stock for mid- to long-term investment.
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WYY stock has more than tripled in value so far this year and has increased over fivefold in the last 12 months, outperforming the S&P 500.
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