Please ensure Javascript is enabled for purposes of website accessibility

Why Luokung Technology Stock Skyrocketed Today

By Joe Tenebruso - Feb 16, 2021 at 7:58PM

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 big data specialist wants to supply China's electric vehicle industry with mapping services.

What happened

Shares of Luokung Technology (LKCO 2.28%) extended their recent torrid gains on Tuesday. By the close of trading, the provider of location-based services for self-driving vehicles had delivered gains to investors of more than 88%.

So what 

Luokung's stock price is up a staggering 320% since Feb. 4. On that day, Luokung announced that its acquisition candidate, eMapgo Technologies, agreed to partner with electric vehicle maker Beijing New Energy Automobile (also known as BAIC BJEV) to develop mapping services for autonomous driving projects. 

An upwardly sloping stock chart.

Luokung Technology's share price has soared since it partnered with a major Chinese EV maker. Image source: Getty Images.

"We are very pleased to begin working with BAIC BJEV on projects that leverage our HD Map capabilities with their manufacturing and brand awareness throughout China for the development of autonomous driving," eMapgo CEO Darwin Lu said in a press release announcing the deal. "We believe this is the future of the industry and want to remain well-positioned to take advantage as further developments occur in China's infrastructure."

Now what 

News of the partnership has helped Luokung bolster its balance sheet via share sales. On Feb. 10, Luokung closed on a $5 million direct offering to institutional investors. Today, the company said it closed on a $15 million stock and warrant sale. This newfound cash should help Luokung advance the development of its mapping technology.

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

Luokung Technology Corp. Stock Quote
Luokung Technology Corp.
$0.43 (2.28%) $0.01

*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 service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

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.