Shares of Remark Holdings Inc. (NASDAQ:MARK) climbed 10.4% on Wednesday, rebounding from a nearly 18% decline yesterday as the small-cap artificial-intelligence (AI) and digital-media specialist was pulled down with the broader market.
As fellow Fool Daniel Sparks wrote yesterday, Remark's drop on Tuesday came with no company-specific news. But major market indices did endure a steep pullback amid concerns that the recent strength in equities as a whole may not be sustainable. Many smaller, yet-to-be-profitable growth stocks like Remark got hit particularly hard in the process.
It's also worth noting that shares of Remark Holdings have more than tripled since early November, when the company told investors that revenue in 2018 will climb more than 40% to at least $100 million. For that, Remark largely credited significant contract wins for its KanKan Data Intelligence platform, revenue from which is expected to more than quintuple in 2018 to over $30 million.
Because of "our accomplishments in AI, Remark is currently beginning to reap the rewards," added Remark Chairman and CEO Kai-Shing Tao. "We are well positioned to enter into the next phase of hyper-growth."
As it stands, barring a release of preliminary results, investors should receive their next update on Remark's progress to that end when it releases fourth-quarter 2017 results in late March. But given its astronomical rise over the past few months, don't be surprised if we see more volatility between now and then without substantial news to support it.