Please ensure Javascript is enabled for purposes of website accessibility

Why Takung Art Stock Skyrocketed 989.7% in March

By Keith Noonan - Apr 3, 2021 at 12:25PM

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

Takung's share price has risen roughly 2,720% over the last year.

What happened

Shares of Takung Art (TKAT 8.52%) soared 989.7% in March, according to data from S&P Global Market Intelligence. Excitement built around non-fungible tokens (NFTs) last month, and the Hong Kong-based online art platform's stock soared as a result. 

TKAT Chart

TKAT data by YCharts

NFTs are blockchain-based digital tokens that can be used to store and define ownership of files that can't be copied, and some investors believe that the technology will become a vehicle for distributing and owning art, music, and video files. Bulls are hoping that NFTs will create a big market for digital collectibles and that this new trend will push Takung Art's business to the next level. 

A toke on a circuit board and text that reads 'NFT Non-fungible token.'

Image source: Getty Images.

So what

Takung Art operates a platform that allows investors to purchase and trade for art including paintings, calligraphies, jewelry, and precious gems. It's not clear to what extent the company will get involved with the NFT space, but the potential for its platform to become a trading post for art stored on the blockchain technology prompted huge growth for its share price last month. 

Now what

Takung Art stock has continued to climb early in April. The company's share price is up roughly 1.6% in the month so far. 

TKAT Chart

TKAT data by YCharts

Takung has posted incredible gains recently, and its incredible rise suggests that investors without very high risk tolerance should steer clear of the stock. Even investors who aren't averse to volatility should proceed with caution.

The market for NFTs is essentially brand new, and it's hard to tell whether the blockchain-based technology will see meaningful adoption or have staying power in the collectibles market. Even if NFT technologies help spur broad adoption for digital collectibles, that doesn't guarantee that Takung's business will be successful.  

The company now has a market capitalization of roughly $378 million, up from the market cap of roughly 36.75 million at the beginning of March.

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

Takung Art Co., Ltd. Stock Quote
Takung Art Co., Ltd.
TKAT
$1.91 (8.52%) $0.15

*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
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

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.