Please ensure Javascript is enabled for purposes of website accessibility

Why MOGU Rocketed Higher Today

By Rich Duprey - Aug 18, 2020 at 4:25PM

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 Chinese small cap ended the day up but gave back the biggest part of the gains in the last hour.

What happened

Shares of MOGU (MOGU 2.44%) rocketed 60% higher during trading on Tuesday, though by the market's close it ended up "only" 24% higher.

So what

There was no apparent news that should have triggered the surge, other than the Chinese fashion and lifestyle company's announcement yesterday it would be reporting fiscal first-quarter earnings next week. While investors might be hopeful about what this small-cap stock will report, it's doubtful they're that excited.

Volatility ahead warning sign

Image source: Getty Images.

Now what

Massive spikes in the share price -- and equally large declines -- have been the hallmark of MOGU's stock lately. Most recently, at the end of July, it shot 60% higher on no news again -- only to give back almost all the gains over the next three weeks, before mounting this latest rally.

With the stock oscillating between $2 and $3 a share, investors should be accustomed to the roller-coaster ride MOGU offers. The biggest gains today were once again given back, and it may be another month before it attempts its next big move.

 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

Stocks Mentioned

MOGU Inc. Stock Quote
MOGU Inc.
MOGU
$2.10 (2.44%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

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

Stock Advisor Returns
394%
 
S&P 500 Returns
127%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

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.