One of the most incredible weekly charts to watch this year has been Lytus Technologies (NASDAQ:LYT). At the beginning of the week, shares of this platform technology services company traded around $40 per share. After a number of daily declines which saw LYT stock drop as much as 90% in a single day, investors are getting a reprieve. At one point today, Lytus rebounded 60% in impressive fashion.
What’s perhaps most intriguing about these moves for Lytus is the lack of news driving this volatility. Typically, some sort of report or disclosure drives moves such as these. However, given the company’s rather significant market size of around $250 million, this move is even more baffling. Prior to the company’s sharp declines on Tuesday and Wednesday, LYT stock was trading at a valuation of nearly $2 billion.
Let’s dive into what investors should make of this news.
What’s Going on With LYT Stock?
Lytus isn’t some micro-cap company with a very small float. Sure, this stock is relatively cheap. However, seeing significant moves such as these in companies valued at more than $1 billion is concerning.
This market has seen some bounces, but it’s still a bear market. And apparently, short sellers looking to take advantage of this sentiment have found a market to be successful in.
I’m not suggesting these moves were the result of any sort of manipulation or short-selling pressure. However, with off-chain short volume around 50%, LYT stock has clearly seeing interest from those taking short bets. So far, those bets have paid off in a big way. But time will tell whether this can continue.
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.