What is written above is BS of the first order. Tapedriveguru is nothing but a short who wants the price to go down.
The Overland / Sphere merger, which closes in September, has all the signs of a colossus in the making. Sphere has, luckily, stumbled onto a solution to make any program run of any generation run on any device of any generation. I say luckily because they were trying to solve another problem entirely when they realized, 'OMG! look what we've done!'. Combining this product with OVRL's reach is 1 + 1 = 5 kind of thing.
Leading bloggers, tech experts, etc. have all viewed the technology, reported positively on multiple forums, and many have become investors. It's early in the products sales cycle, and no the revenue for Sphere's products isn't much yet($1.7M) because there are only 6 guys(the entire Sphere staff is less than 450) selling it, and they've only been selling it for two quarters!
That ALL changes with the OVRL / Sphere merger. The size of the sales staff explodes logarithymically, and the shorts know it. They are trying to get out of their bad bet(many shorted Sphere at $2) before the economies of scale kick in.
You will read endless BS about the merger and both companies. Shorts are desperate, and likely to get killed. They've been very successful over the last two weeks in cutting the price in half, but many are still far underwater and realize they are vulnerable to any news release or earnings report. OVRL reports ~Aug15, and
Sphere has already reported 70% increase in earnings quarter over quarter.
boogins_00's response fails to explain why the stock is collapsing, which is the original question. He's been consistently wrong, and continues to be. The only thing he seems to know how to do is to aggressively and falsely attack other's motives.
For the record, I don't hold any position in OVRL, ANY, or any related stock. He makes this stuff up. Shame on him.
If there is any truth to the article "Sphere 3D: Rewarded For A Shotgun Wedding That's Doomed To Backfire?" that is linked in the Yahoo page, only a fool would be in this for the long haul. The article is probably factual. Otherwise, it would be libelous, and I doubt the publisher would tolerate it or survive.
Besides not being able to answer "how many hundreds of engineers . . .", he hasn't backed up anything that he says with facts.
Something tells me he's not going to calculate the market cap/revenue ratio.
Also, a 70% increase of diddly squat is still diddly squat.
For one reason or another, the company has fallen under the influence of one firm with expertise in picking over the carcasses of insolvent firms, and another that manipulates stocks with same end effect of a pump-and-dump. Investors are starting to pick up on the warning signs, including the recent article "Sphere 3D: A Ticking Time Bomb Set To Self-Destruct?" linked in the Yahoo news items for the company.
The ratio between market cap and total revenue for a legitimate company might be as high as 12:1, or in really extreme cases, maybe 50:1. Ratios as high as Sphere 3D's should raise a red flag. The substance is missing. The red flags shouldn't be ignored.
I know very well the level of effort, expense and leadership that it takes to still be inadequate to bring a "virtualization" system to market, and I can tell you that an order of magnitude greater than what Sphere 3D has available would be inadequate. Perhaps 200-500x their current expenses would be realistic. Perhaps this should best be phrased as "how many hundreds of engineers are working on the product?"
I also know some people who are really good about promising future products, whether by self-delusion or outright lying. There are more than enough of these to go around.