What Is Going on With Starbox Group (STBX) Stock Today?

  • Starbox Group (NASDAQ:STBX) surged more than 1,100% at today’s intraday high on the day of its IPO.
  • This move follows similar speculative rallies, such as in Magic Empire Global (NASDAQ:MEGL).
  • Questions about how long this rally could continue remain, as this stock loses steam this afternoon.
STBX stock - What Is Going on With Starbox Group (STBX) Stock Today?

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In one of the more incredible opening days for a new IPOStarbox Group (NASDAQ:STBX) officially has debuted with a bang. Today, STBX stock opened at $27 per share, an incredible 575% premium to its original listing price of $4 per share. In fact, this stock was a 11-bagger intraday, hitting a high of more than $46  before declining toward the $12 range at the time of writing.

This move follows other similar incredible IPO launches in recent weeks. Magic Empire Global (NASDAQ:MEGL) is perhaps the most notable example of a company that went parabolic following its initial public offering. This stock surged from a listing price around $4 per share to nearly $250 before falling back to earth. It appears speculators are looking for new, thinly listed trades.

Let’s dive into what investors may want to know about Starbox, and whether this rally is sustainable.

Why Is STBX Stock Surging Today?

A Malaysian payments company, Starbox is a rather interesting pick in its own right. This company sells digital advertising services mainly to merchant advisors. These sales take place via mobile apps and websites, representing what could be the future of commerce in Asia.

Notably, Starbox’s IPO appears to be aimed at dedicating these proceeds to expanding the company’s services to other countries in Southeast Asia. It’s a big market, and there are some fundamental growth drivers investors are clearly considering.

However, the incredible valuation bump Starbox has seen today may have some investors worried. This is a company that’s seemingly a higher-risk, higher-reward pick. In this macroeconomic environment, such stocks have been having a tough time. Indeed, higher interest rates and slower economic growth prospects aren’t great catalysts.

Accordingly, this rally, like that of Magic Empire, is likely overdone. Who knows how fast this stock will come down. However, it appears speculators are already taking profits, given the sharp decline this stock has seen in today’s afternoon session.

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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Article printed from InvestorPlace Media, https://investorplace.com/2022/08/what-is-going-on-with-starbox-group-stbx-stock-today/.

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