What happened
Sgoco Group (SGOC +0.37%), a small-cap conglomerate that operates in China, saw its stock soar on Wednesday on increased trading volume. Shares were up as much as 91.4% on the day; as of 11:37 a.m. EDT, they were up 72.1%.
So what
On average, Sgoco Group stock gets bought and sold 327,000 times a day. But today, only a few hours after the opening bell, it had already traded 23.6 million times.
Image source: Getty Images.
There was no press release or earnings announcement from Sgoco Group that warranted this big move, so the likely suspects could be Wall Street Bets traders on Reddit, who have tried to push around this stock in the past. In early July, it went up over 1,000% in just a few days on no fundamental news. The stock gave up a lot of those gains in recent weeks and is now up around 360% in the past month, including the big jump today.
Now what
Even though the company's shareholders are likely happy today, this looks like a high-risk stock that individual investors should stay away from. With less than $5 million in revenue in 2020, negative gross profits, and a market cap now over $500 million, there's not much value that investors are getting in buying this stock.
