What's happening: Shares of TrueCar (NASDAQ:TRUE), an Internet-based information, technology, and communication services company that plays middleman between its website users and automotive dealers looking for sales leads, are trading 12% higher Tuesday.
Why it's happening: TrueCar's gain today is happening with twice as many shares exchanging hands as its average volume over the last three months. However, there's no substantial news driving today's gain, and this seems to just be a small rebound on the heels of multiple stock price plunges this week, which sent the stock price to a new 52-week low of $5.77.
Expect TrueCar's stock price to remain volatile as investors continue to weigh the company's future potential to be a game changer in the way consumers buy vehicles, with a widening net loss during this year's first quarter and reduced guidance for revenue and profits for the second quarter.
Daniel Miller owns shares of TrueCar. The Motley Fool recommends TrueCar. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.