Eargo (NASDAQ:EAR) stock is doubling in mid-morning trading. This follows the recent trend of little-known stocks jumping by huge amounts, based on speculation, in short periods of time. Other names that have undergone similar moves in recent days include AMTD Digital (NYSE:HKD), AMTD Idea (NYSE:AMTD) and MAIA Biotechnology (NYSE:MAIA).
Eargo, which is trending on social media this morning, sells and markets hearing aids. There doesn’t seem to be any company-specific news sending this stock up today. Rather, EAR stock is soaring on pure speculation.
More Background on Eargo
The company claims to offer “discreet design … at home screenings, personalization by you, for you, and 24/7 mobile support.” The company adds that its hearing aids make hearing “virtually invisible.” It promises that only the users themselves will visually notice its hearing aids and that users will “barely feel them.”
Eargo’s CEO, Christian Gormsen, has been at the helm of the firm since 2018. Before taking that position, he served as commercial director, EMEA, of ISS, which provides facility services to many major companies. From 2009-2012, he was a senior vice president at GN ReSound, which also markets hearing aids.
In a May 24 U.S. Securities and Exchange Commission (SEC) filing, Eargo reported that “negative cash flows and current lack of financial resources raise substantial doubt as to our ability to continue as a going concern.” The company indicated that it could have to issue additional shares of EAR stock to obtain funds.
Finally, it noted that, due to regulatory issues, it had stopped accepting insurance from its customers. That decision has negatively affected its financial results and “could negatively impact the Company’s liquidity and working capital,” Eargo reported in the filing.
On the date of publication, Larry Ramer 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.