Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Takung Art Are Surging Today

By Bram Berkowitz - Updated Apr 22, 2021 at 11:22AM

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

Investors continue to speculate about whether the company will jump into the NFT space.

What happened

Shares of the online platform Takung Art (TKAT 0.58%) traded more than 31% higher as of 11:10 a.m. EDT this morning for no apparent reason.

So what

Shares of Takung continue to swing wildly as investors speculate whether the company will jump into the nonfungible token (NFT) space.

NFTs are digital files such as art, videos, and audio stored on blockchain, which is the digital ledger technology that powers cryptocurrencies. Some NFTs have already sold for millions of dollars, pushing some companies to begin offering NFTs, and many to believe the asset class has huge potential, not unlike the earlier days of cryptocurrencies.

The letters NFT above a coin that says "Non Fungible Token."

Image source: Getty Images.

Takung is not in the NFT space yet, but many believe the company could be prime a suspect to jump in because it runs an online platform that allows artists, art dealers, and investors to exchange and invest in artwork. This would seem like an ideal platform to begin offering digital art, a large NFT category.

Now what

Over the last year, shares of Takung have risen from $1.35 per share to roughly $26.60 per share now. The run-up does not seem realistic even if the company were to get into the NFT space.

Furthermore, the NFT market is comprised of a new asset class that could be incredibly volatile, so I would trade with extreme caution here and thoroughly analyze the company before considering investing.

 

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
$1.73 (0.58%) $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 analyst team.

Stock Advisor Returns
323%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

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.