• Magic Empire takes investors for a wild ride on its first day of trading.
  • MEGL was priced at $4 and sold 5 million shares.
  • MEGL closed at $97 after trading up to $235.

Magic Empire (MEGL) took on the guise of a magic carpet ride on Friday as its first day of trading saw MEGL shares rise over 2,000%. Yes, you read that correctly. MEGL stock was priced at $4 for its IPO but finished the day at $97. Magic Carpet, sorry, Magic Empire is a Hong Kong-based advisory services company. Ironically enough, those advisory services are involved in IPO listings advice and underwriting services, so you would have thought they would know how to value themselves a bit more accurately. I mean come on, is a P/E ratio of 7,000 is sensible?

Magic Empire stock news

It gets even better on Monday as MEGL stock has surged again and is trading at $205 currently in Monday's premarket. From what we can see the company made $2.6 million in 2020, which fell to $2.2 million in 2021. The current market cap is just under $2 billion. All those who believe in the efficient markets theory, please stand up! Unfortunately for insiders, there was or is a 180-day lock-up period that ends on February 1 next year. That must be frustrating. 

Magic Empire stock forecast

Magic Empire is likely to be yet another shooting star effect that garners considerable attention before falling back to earth and relative obscurity. If you want to trade this, be my guest, but it is pure ultra high-risk gambling and be prepared to lose everything. 

MEGL chart, 1-minute

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

GBP/USD licks its wounds at record low amid pessimism over UK, risk-aversion

GBP/USD licks its wounds at record low amid pessimism over UK, risk-aversion

GBP/USD consolidates intraday losses around the recently flashed record low near 1.0340, as bears fear the BOE intervention. Hawkish Fedspeak, pessimism surrounding the UK economy and broad risk-aversion add strength to the bearish bias.

GBP/USD News

AUD/USD renews two-year low as bears poke four-month-old support around 0.6500

AUD/USD renews two-year low as bears poke four-month-old support around 0.6500

AUD/USD reverses the early Asian session corrective bounce on Monday as it drops back towards 0.6500. The Aussie pair pokes the support line of a 4.5-month-old descending trend channel. May 2020 low can lure sellers on defying the bearish channel formation.

AUD/USD News

EUR/USD: Bears retain control at two-decade low

EUR/USD: Bears retain control at two-decade low

EUR/USD dropped to the lowest levels since June 2002 before recently bouncing back to 0.9660 during Monday’s Asian session. The bearish chart formation and sustained trading below the previous key support line from July, now resistance around 0.9830, keeps the pair sellers hopeful.

EUR/USD News

Gold reverses intraday losses from $1630, US Durable Goods Orders buzz

Gold reverses intraday losses from $1630, US Durable Goods Orders buzz

Gold price has recovered the major portion of losses recorded in the Tokyo session. The precious metal declined sharply to near $1630.00 but recovered firmly and is indicating a formation of buying tail, which indicates a strong resoponsive buying structure.

Gold News

Ethereum: Assessing the possibility of a post-Merge rally

Ethereum: Assessing the possibility of a post-Merge rally

Ethereum price trades at $1,323 on Sunday, several days after sliding to $1,200. It was a surprise that the largest smart contracts token would give up most of its gains during and after the much-publicized Merge.

Read more

Forex MAJORS

Cryptocurrencies

Signatures