TAOP Stock Price: Taoping set to fall from the clouds, bargain-seekers may join in
|- NASDAQ: TAOP is set to end the week and month with a substantial fall.
- Taoping shares leaped on Thursday following its 6:1 reverse split move.
- The Shenzhen-based Smart Cloud firm may attract bargain-seekers if it falls fast.
Taoping may be suffering high-altitude turbulence – shares of the Smart Cloud provider are set to fall around 25% on Friday in what may be seen as a painful end to the week or the month. While end-of-month flows may rock big stocks, NASDAQ: TAOP is more impacted by its own business – especially that in the stock market.
NASDAQ: TAOP leaped from an opening price of around $4 to nearly $15 before closing at $8.80 in a wild Thursday. The surge came after the Shenzhen-based IT company executed its reverse-split – making every six old stocks worth one new share.
Before the financial maneuver, TAOP equities traded around $0.40 – in penny-stock territory. The Smart Cloud company apparently made a clever move, attracting buyers after the reverse-split.
It is now triggering profit-taking – with an expected drop to the $6 handle. Yet after the much-needed downside correction, NASDAQ: TAOP could attract bargain-seekers. The surge seen on Thursday could be enough to raise the company's profile and trigger new flows.
TAOP Stock Outlook
Apart from the ebb and flow of profit-taking and buying the dip, Taoping's next moves also depend on its business. The firm is set to launch its market after upgrading its platform. Additional partnerships may increase the company's revenues via its Software as a Service (SAAS) model.
Downside levels to watch are $7.71, $6, and $3.98. On the upside, $10, $11.20, and $14.
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