Shares of UP Fintech (NASDAQ:TIGR), a fast-growing China-based online brokerage, took a hit on Wednesday. The stock was down as much as 16.4% at one point but finished the day down just 4.3%.
The stock's decline is unlikely tied to any disappointment in the company's third-quarter financial results, as revenue growth accelerated during the period and adjusted earnings improved. Shares may simply be taking a breather after big gains recently.
UP Fintech's third-quarter revenue jumped 148% year over year to $38 million. This was an acceleration from $122% growth in Q2. Non-GAAP net income was $5.3 million, up from $0.7 million in the year-ago quarter and from $2.8 million in Q2.
"Our platform attracted a record number of new clients as we continued to innovate and add new features to enhance the user experience," said CEO Wu Tianhua in the company's third-quarter earnings release. "I am delighted to announce that in late October 2020 we opened our one millionth client account, a major milestone for our firm."
Even after today's decline, the growth stock is up 116% in the last six months and 32% in the past month alone. The stock's decline today may simply reflect some profit-taking.
Looking ahead, investors will watch to see how long these triple-digit growth rates can be sustained. One area in particular worth watching is the company's international expansion. UP Fintech has been tapping into international markets to help maintain its momentum. Overseas clients are now representing one-fifth of new accounts.