Micro-mobility is apparently attractive, at least to retail investors. Today, Helbiz (NASDAQ:HLBZ) stock is rocketing as the company rides the speculative meme stock wave even higher. At the time of this writing, HLBZ stock is up by more than 130%.
This move comes on essentially no news. Helbiz did announce a new partnership with Universal Pictures today, by which users can win tickets to Minions 2: The Rise of Gru. However, it’s hard to believe that free movie tickets could induce the kind of demand implied by today’s move.
Rather, investors seem to be looking for speculative stocks that can run. As a de-special purpose acquisition company (SPAC) name that has rallied in the past, HLBZ stock has created mostly pain for investors since its launch. Last week, shares traded near an all-time low of 45 cents. At the time of this writing, however, the stock is worth $1.65.
Let’s dive into what investors should make of this impressive rally.
Can HLBZ Stock Continue This Incredible Surge?
Given that Helbiz lost more than 95% of its value from its peak at last week’s lows, these triple-digit rallies may certainly become more commonplace. The company has a $67 million market capitalization after today’s rise. Thus, it’s conceivable that continued momentum could provide speculators more in the way of near-term returns.
That said, Helbiz’s extremely niche market for electric micro-mobility solutions doesn’t scream long-term fundamental growth. Rather, the company’s stock price and float are prone to being manipulated by surges in buying interest. Such is the case today, as retail investors catch onto this move.
Of course, investors should note that Helbiz insiders were big buyers at the depressed levels we saw late last month. In fact, CEO Salvatore Palella continued to buy near the bottom, adding more than 325,000 shares at what looks like a very good price. Thus, there may be a fundamental case for the continued rally in HLBZ stock.
Still, fundamentals clearly may not matter in the short term, once again. As such, investors may want to watch shares from the sidelines. It looks like we’ve got more meme stock mania on our hands. Time to bring out the popcorn.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Chris MacDonald did not hold (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.
