FaZe (NASDAQ:FAZE) stock is rocketing higher on Monday despite a lack of news from the esports company.
There are no new press releases from FaZe, and the company also hasn’t made any recent filings with the Securities and Exchange Commission (SEC). On that same note, analysts haven’t given any new ratings that would explain today’s rally.
Instead, investors can look to heavy trading as the reason FAZE stock is on the rise today. As of this writing, more than 20 million shares of the company’s stock have changed hands. That’s already well above its daily average trading volume of about 445,000 shares.
One other thing that investors will want to keep in mind is FaZe’s penny stock status. This comes from its low trading value of around 15 cents, as well as its market capitalization of just $11.678 million.
What That Means for FAZE Stock
Being a penny stock opens the company’s shares up to certain vulnerabilities. Among these is volatility from heavy trading. This often happens when day and retail traders target a stock for a pump and dump. Based on the stock’s recent activity, that could be what’s happening with FAZE shares this morning.
FAZE stock is up 71.4% as of Monday morning but was down 91.1% year-to-date when markets closed on Friday.
Investors looking for even more of the most recent stock market stories will want to keep reading!
We’re offering up all of the hottest stock market news traders need to know about on Monday! That includes the biggest pre-market stock movers this morning, the latest news concerning a housing market crash and more. All of that news is ready to go at the links below!
More Monday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
- Housing Market Crash Alert: Mortgage Rates Just Set a New High
- Dear Potential BIRK Stock Investors, Mark Your Calendars for an October Birkenstock IPO
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 risk.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White 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.
