What happened?

Shares of UP Fintech Holding Limited (TIGR), otherwise known as Tiger Brokers, surged 98.7% higher in January, according to data provided by S&P Global Market Intelligence. Surprisingly, there's very little news that would seem to account for these stellar gains. But perhaps it can be simply explained by an increasing awareness of the company among investors. 

So what

According to Yahoo Finance, only 4% of UP Fintech Holding stock is owned by institutional investors. That likely means this is a company flying completely under the radar. However, once investors do finally hear about UP Fintech Holding, it's a story that's easy to latch on to and get excited about. The company is being called the "Robinhood of China," its revenue is growing at a triple-digit pace, and it has its sights set on international expansion. 

A businessman draws an exponential growth curve on a graph.

Image source: Getty Images.

Here, in early February, we now have greater evidence to support this under-the-radar hypothesis. Kerrisdale Capital is a research firm with a large following. On Feb. 2, it said it was long shares of UP Fintech Holding. Following this announcement, the stock immediately popped. In short, it appears that as investors are exposed to UP Fintech Holding for the first time, they like what they see and quickly jump on the bandwagon.

That's not to say there wasn't any news whatsoever for UP Fintech Holding. During January it announced a partnership with Aurora Mobile to help the company with user data analytics, which could improve its customer service -- a good thing. Furthermore, the company announced that it's replaced its auditing firm with KPMG Huazhen. And financial audits are something investors in international stocks are particularly interested in.

It's possible to cast both of these developments in a positive light. However, they don't seem to adequately explain why UP Fintech Holding stock nearly doubled in January. This is why I prefer the increased-visibility explanation.

Now what

Stories that are easy to latch on to, like the story of UP Fintech Holding, have a hidden danger. It's easy to oversimplify an investment thesis by ignoring risks and failing to outline how a company will create lasting shareholder value. To be clear, I'm not saying that UP Fintech Holding is a dangerous stock to own. I'm saying the temptation to invest for weak reasons is strong, and getting stronger as the stock skyrockets. Fear of missing out is a real thing.

For investors, it will be important to calmly approach this as you would any other stock. Try to see it from both sides and make your decision accordingly.