MW Phunware - which soared as a 'Trump trade' - preps AI-driven canvassing tool
By James Rogers
The company developed and launched a mobile app for Donald Trump's 2020 re-election campaign
Mobile-advertising software company Phunware Inc. - which garnered plenty of attention during the presidential election as a so-called "Trump trade" thanks to its link to the president-elect - is now working on a canvassing technology that it says will give campaigns greater insight into voter sentiment.
Like Trump Media & Technology Group Corp. $(DJT)$, which operates Trump's Truth Social social-media platform, shares of Phunware $(PHUN)$ soared amid the former president's election campaign. Phunware developed and launched a mobile app for Trump's 2020 re-election campaign.
The company's stock was down 0.7% Thursday but has gained more than 32% in the last three months, outpacing the S&P 500 index's SPX gain of 8.3% in that time.
Related: Phunware narrows quarterly loss amid revenue decline, and stock sinks further
In early November, Phunware announced a deal to acquire a controlling stake in MyCanvass, a technology company providing voter- and advocacy-engagement tools. MyCanvass is a subsidiary of Campaign Nucleus, a software-as-a-service platform founded by Brad Parscale, the digital director of Trump's 2016 campaign and the manager of his 2020 campaign.
With its MyCanvass stake, Phunware is working on a new canvassing technology that will make its debut next year. "We expect to give a final demo some time in Q1, Q2," Stephen Chen, Phunware's interim CEO, told MarketWatch. "What you will find is that it will be an AI-driven canvassing tool - we will be able to personalize based on demographic information, behavioral information and location."
The tool will harness information from "everyday citizens" as well as campaign volunteers, campaign organizers and the candidates themselves, according to Chen. "For campaigns, you will be able to see actionable insights," he added, noting that this will encompass voter sentiment and "outreach effectiveness."
Related: Phunware's stock soars on Donald Trump's election victory
Chen told MarketWatch that the "AI-powered civic engagement" tool can be harnessed by a broader cross-section of society, rather than just a political party. "It strengthens communities, it fosters trust and discourse, it encourages decision-making and it also promotes accountability across all parties," he said.
The interim CEO said that the technology aims to tackle shortcomings in existing polling data, where echo chambers can create the sense of "a false equivalency where both sides appear to be equally strong," he said. "We have improved data collection and analysis," Chen added.
Outside of the political realm, a number of companies have harnessed Phunware's technology, including Live Nation Entertainment Inc. (LYV), Marriott International Inc. $(MAR)$, Norfolk Southern Corp. $(NSC)$ and the National Football League.
Related: Phunware's stock tumbles more than 35% after CEO retires
Separate to its work with MyCanvass, Phunware is also developing a new generative AI platform. "We're doing private beta testing now," said Chen. "We're on track to have a broader release by mid-2025. We will be opening up to broader audiences by the middle of the year."
Phunware has undergone leadership changes in recent months. Last month, the company said that Chief Financial Officer Troy Reisner was stepping down, shortly after it announced the retirement of Chief Executive Mike Snavely. Chen, the former chair of Phunware's board of directors, has assumed the role of interim CEO as well as the duties of principal financial officer and principal accounting officer.
"The company is very well integrated," Chen told MarketWatch. He said he was unable to comment on the company's CEO and CFO search.
Related: Phunware's stock slides after CFO steps down and poll puts Harris ahead in Iowa
Phunware shares were down 0.7% Thursday.
-James Rogers
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
December 12, 2024 14:39 ET (19:39 GMT)
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