Why is Control4 So Volatile?

In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analysts Jason Moser and Brendan Mathews take a question from a reader who asks, "Is there any specific reason why Control4 (NASDAQ: CTRL  ) is pretty volatile? Seems like it's up or down over 5% everyday!"

Jason points out that there are a couple of contributing factors to Control4's volatility. Number one is the fact that it's a small cap company that is playing into the beginning stages of a very big long-term trend in the smart home and the Internet of Things. Secondly, Control4 has a very small number of shares that float on the open market compared to other big tech companies like Google (NASDAQ: GOOGL  ) for example which means that the share price can be more subject to big swings.

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Related Tickers

8/20/2014 11:35 AM
CTRL $14.97 Down -0.12 -0.80%
Control4 CAPS Rating: *****
GOOGL $595.28 Down -1.83 -0.31%
Google (A shares) CAPS Rating: ****

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