This week has been a rather “boring” week for investors looking for volatility. Trading volumes are down as investors focus on finishing off that Christmas turkey and preparing for New Year’s. However, some small-cap stocks such as CooTek (NYSE:CTK) and CTK stock are on the move today.
Currently, CTK stock has appreciated more than 30% at the time of writing. This micro-cap stock’s market capitalization of only $42 million after today’s rise means many investors may not have heard of it. That said, this is a stock that’s starting to gain some traction among retail investors today.
Today, it appears the launch of a new iOS game by CooTek is responsible for today’s move. Investors appear to like the direction the company’s “Hotties Up” game has gained in the U.S. Indeed, this game hit No. 3 in the rankings of top iOS games in the U.S.
Let’s take a look at what this game is, and why investors are swooning over CTK stock.
CTK Stock Soars on Successful Game Launch
Hotties Up is a game that essentially relies on dress-up and parkour as the main themes for users. Intriguing, I know.
This game had been previously launched, but has been re-done, with a second version adding various enhancements. This game is a collaboration between Wrap Drive (the developer) and Smillage, the game studio. CooTek happens to be a major investor in Smillage.
Should this game continue to generate buzz, investors stand to benefit from the impressive unit economics of the mobile gaming industry. An industry that’s rather bloated, and concentrated among a few names, many investors are in search of the next best small-cap winner providing users with a great experience and top-notch content.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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