What a day it’s been for investors in Knightscope (NASDAQ:KSCP). At the time of writing, KSCP stock has skyrocketed more than 100%, surging to almost match its post-initial public offering (IPO) high.
To be sure, Knightscope has been an incredibly volatile stock over the past couple of days. On Thursday, KSCP stock traded publicly for the first time, after its highly anticipated IPO. Shares have surged and plunged in incredible fashion, trading between a range of $5.91 and $15.48 over the past two days alone.
Currently, KSCP stock appears to be settling down around the $12.50 level, though buying pressure remains strong for this company. A developer of advanced physical security technologies, Knightscope has been seen as an early-stage growth champion in what could be a burgeoning space. This company produces autonomous security robots and had already garnered some big clients prior to its IPO.
However, there’s an announcement today that has investors once again talking about Knightscope. Let’s dive into what investors are watching with this company.
KSCP Stock Soars on Client Addition
Today, Knightscope announced the company has secured a Fortune 500 company as a customer. Securitas, one of the largest security players in the U.S., has added a Knightscope autonomous security robot to its fleet. While this appears to be a test-run for the company, should this bode well, investors have much to gain from an expanded partnership.
Indeed, there’s likely a fair amount of skepticism when it comes to autonomous security robots. Companies looking to potentially save on costs certainly have a reason to look at these programs. However, the ultimate effectiveness of Knightscope’s K5 units, and their increased adoption by key clients such as Securitas, will be key to watch.
Right now, investors are jumping on this news as a win. Certainly, gaining a big-time client such as Securitas is bullish in the near term. Now, the question is, can this momentum be maintained over the long term?
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.