Shares of Ideanomics (NASDAQ:IDEX) rose 94.5% in January, according to data from S&P Global Market Intelligence. The stock gained ground thanks to a combination of acquisitions news, a strong monthly performance update, and momentum for the electric vehicle (EV) space.
Ideanomics published a press release on Jan. 5 announcing that it had signed an agreement to acquire Wireless Advanced Vehicle Electrification (WAVE) in a joint cash-and-stock deal. WAVE is a provider of wireless charging for EVs. The news pushed Ideanomics shares higher, and the stock continued to climb in conjunction with subsequent announcements in the month.
Ideanomics' Mobile Energy Global (MEG) segment primarily revolves around EV battery technology and has a heavy focus on the Chinese market. The company's fintech services business remains at an even earlier growth stage but could emerge as a performance driver if it can tap into overall industry momentum. Substantial developments for both of its core business units in January helped Ideanomics stock close out last month with big gains.
Ideanomics completed its acquisition of Timios Holding, a fintech focused on title and settlement solutions, on Jan. 11. The company also posted December results for its MEG division on Jan. 15, reporting delivery of 439 total units, with 356 units for the company's taxi and ride-hailing segment and 83 units for the rental car segment.
The stock has continued to surge early in February's trading, and is up roughly 22% in the month so far.
The EV space has been super hot over the last year, and many companies with significant exposure to the industry have seen their valuations soar. Ideanomics has been making acquisitions that could help it capitalize on momentum in high-growth industries, and its stock has exploded 755% over the last year. But investors should keep in mind the company's highly growth-dependent valuation and speculative outlook.
Ideanomics now has a market capitalization of roughly $2 billion. The company reported just $10.6 million in sales in the third quarter, with $10.1 million coming from its MEG segment and the remainder from its fintech unit. It remains a young player in the fast-developing commercial EV space, and that focus means the stock remains a high-risk, high-reward play.