Xiaobai Maimai Stock News and Forecast: Why is HX trading higher?
- HX stock is one of the new retail names garnering a lot of attention.
- Xiaobai Maimai stock has rocketed in the last week, up over 300%.
- China large-cap tech stocks are back on investors' radar, but HX is small-cap speculation.
HX stock has been one of the most heavily trending names this past week on social media, and with a gain of over 300% for the week so far it is not hard to see why. The lure of such gains is hard to ignore and shows once again the power of retail when it gets its hands on the right stock. According to its investor relations site, Xiaobai Maimai works with both Chinese e-commerce platforms and sells a variety of products on its own social e-commerce platform.
HX stock news
The stock is highly volatile and well followed recently on social media. The recent resignation of CEO Xaibao An appears to have had no impact on traders' enthusiasm for the recent stock surge. Usually, the resignation of a CEO would be taken as a sign of uncertainty for investors, but instead HX stock rallied over 42%. The company does have a co-CEO, Yilin Wang, who is taking over as sole CEO with Xiaobao An moving from co-CEO to Vice President and leading the company's e-commerce business.
Why is HX stock going up?
Apart from the news above there does not seem to be a whole lot of other news evident. This company has a market cap of $307 million, and social media mentions have been skyrocketing on the stock. The stock may also be benefitting as investors and retail traders especially return to Chinese tech names, which have taken a hammering of late on regulation concerns. UBS announced this week that it was upgrading Chinese equities and that regulation risks were already priced in.
Xiabai Maimai (HX) stock forecast
Forecasting this one is not for the faint-hearted. I mean, can you make sense of that chart? Suffice it to say, this is super volatile, so know what you are trading. Stocks that go up like this often come back down just as quickly, so extreme caution is needed. Especially when social media is apparently behind the rise, this one looks to be like all the risk-reward is to the downside, and chasing it up here is highly risky. HX shares have done this before. Back on August 13 of this year, HX stock rose nearly 300% in one day before halving the next day.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
