Shares of Exela Technologies (NASDAQ:XELA), a business process automation company, skyrocketed Monday after the company announced a new business relationship with one of the largest franchisors in the world.
Exela didn't say which franchisor specifically, but that didn't appear to curb investors' enthusiasm. The tech stock closed the trading session up by a mind-blowing 51.3%.
Exela said that the unnamed franchisor will use its digital mailroom (DMR) service to allow remote employees to access company data securely and quickly.
According to Exela, its DMR is a user-configurable document management system that digitizes mail and other documents, making them easily shareable, searchable, and secure.
"DMR's comprehensive feature set enabled us to sign one of the most recognizable logos on the globe," said Exela President Suresh Yannamani in a press release.
Exela has more than 4,000 customers in 50 countries, so the idea that one new unnamed customer could move the needle so much for the stock in just a day is a bit surprising.
But its share price has been extremely volatile, which may help explain Monday's massive move. Year to date, the stock is up by about 85%, but it's off by 47% since mid-July.
Given its recent history of sharp and wild share price swings, investors may want to tread lightly with Exela stock, even if it is significant that it has added a major new client to its roster.