- The stock price of UTime Ltd (NASDAQ: UTME) increased by over 55% during intraday trading. This is why it happened.
The stock price of UTime Ltd (NASDAQ: UTME) increased by over 55% during intraday trading as it went from a previous close of $42.30 to $67. Investors appear to be responding to a Bloomberg report highlighting the recent rallying of the company shares.
“The Chinese maker of mobile phones and accessories went public on Tuesday in New York at $4 share. By Wednesday, the stock hit a peak of $107.33, up nearly 2,600% from its offering price,” says the Bloomberg report about UTime. “The company, valued at about $33 million at its debut, now has a market capitalization around $350 million even after the stock retreated Thursday.”
Bloomberg also noted that the 875% first-day “pop” gave UTime the best debut in the U.S. ever since Internet service provider Freeserve Plc increased 1,261% during the booming dot-com market in 1999.
“One trader defined the price action seen with UTime as mind-blowing, but also an indication of investors’ desire to find and snatch “early on,” what could become a new hot stock. The stocks that fit this profile — small in size with the deal managed by smaller banks – tend to be highly volatile,” added the report.
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