Hot Stock of the day.

Shares of Wunong Net Technology (WNW) reached a 15.65% growth during Pre-Market hours and finished the day with a 75.36% growth.

Why is this happening?

There may be different reasons why this is happening. One of the reasons this is happening is because on Friday WNW was mentioned on social media multiple times. We have seen in the past how social media influences the Market. A recent example is GameStop and AMC Entertainment when their prices rocketed after being heavily mentioned on Reddit channels. So it’s not uncommon to think that this happened again with WNW although on a smaller scale. Yet, there is another reason this is happening; according to Rich Duprey, this morning the Chinese online commerce company filed a notice with SEC, which indicated that WNW had created a subsidiary last September. A subsidiary is a separate company, which simplifies the division of the business. Due to this news, investors may be assuming that there is a deal coming up and most of the time when big deals are on the table, money starts flowing causing people to demand more of the stock, which at the same time increases the price of the stock and that’s when the profits come.

Has this happened before?

WNW was listed on December 15, 2020, on Robinhood at a starting price of $7.98. Only 2 days after the company hit a high of $160.68, the price of the stock went up by more than 1,000% in a single day. Eventually, the NASDAQ exchange became concerned about the situation and decided to stop trading WNW shares for a couple of days. The hype didn’t last for long, the next day its price went down to $77.98, and for the next month, it kept going down until this new surge. Although the price dropped considerably, Wunong still managed to be up about 100% compared to its initial price of $7.98; not taking into consideration today’s jump.

Is Wunong Net Technology a good stock to buy?

Whenever a stock goes up like crazy, it usually means there is something not right. It’s not normal for companies to surge at such high numbers in just a single day. As mentioned previously, social media and news can hype people up into buying a certain stock, but the hype won’t last for long, and if you are not careful enough you might end up losing a couple of hundreds or even thousands. Considering WNW’s case, we can consider this stock as highly volatile, which means that the price can change dramatically over a very short time period. The change can benefit the investor if it goes up or it can leave the investor with empty pockets if it goes down. For obvious reasons, highly volatile stocks are extremely risky. Given these points, can we consider WNW a good investment? It’s hard to tell with accuracy whether it is a good or bad investment. WNW has just recently been listed for public trading, so the company hasn’t really gotten the chance to prove its worth. So far it’s doing great since it’s about 300% up from its initial price, but keep in mind, this happens because of social media and promising news. But in reality, nothing extraordinary has happened with WNW to be up by much; it could only be a temporary trend and if that’s the case, WNW will disappoint many. On the other hand, WNW is up big time and if it keeps the same flow over time, it can be a major investment opportunity; it could turn into being a big fish for eCommerce. These are the two directions in which Wunong Net Technology could be heading. It’s true that it is a risky investment, but also it’s a promising one.

REMEMBER THIS IS NOT FINANCIAL ADVICE, IT’S ONLY FOR EDUCATIONAL PURPOSES. DO YOUR OWN RESEARCH IF YOU ARE CONSIDERING INTO BUYING WNW

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