Please ensure Javascript is enabled for purposes of website accessibility

Why Ideanomics, Inc. Stock Fell 16.6% in October

By Keith Noonan - Nov 12, 2018 at 7:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company formerly known as Seven Stars Cloud trades down roughly 35% year to date.

What happened

Shares of Ideanomics, Inc. (NASDAQ: SSC) dipped 16.6% in October, according to data provided by S&P Global Market Intelligence. The fintech and blockchain services company saw its stock sell off along with the broader market in a month that delivered the biggest percentage-based declines for major U.S. indexes since February 2009.

^SPX Chart

^SPX data by YCharts

Ideanomics is a small-cap Chinese company with a valuation of roughly $215 million as of this writing. It also has an unpredictable sales and earnings outlook. There does not appear to have been any business-specific news behind the stock decline last month, but those characteristics make shares prone to underperforming the broader market amid selloffs.

So what

Ideanomics published a press release on Oct. 9 detailing a partnership with TPJ Ltd. that will see the two companies open a commodities and energy digital asset exchange. The next day, the company issued a press release stating that it had closed on its $5.2 million deal to acquire a facility previously owned by the University of Connecticut. Ideanomics plans to invest $238 million to turn the property into a technology campus.

2018 has been a year of big swings for Ideanomics stock, which was listed as Seven Stars Cloud prior to the company's name change in August. Shares are currently down roughly 35% on the year.

Now what

Ideanomics stock has continued to lose ground in November, trading down roughly 5.4% through the month as of this writing.

^SPX Chart

^SPX data by YCharts

The company is scheduled to report third-quarter earnings results before the market opens on Nov. 14. Management has yet to issue sales or earnings guidance for the period, but the business recorded rapid sales growth in its last two reporting periods -- with first-quarter sales rising 161% year over year to $186 million and second-quarter sales rising 207% to $89.7 million.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
319%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.