Zapp Electric Vehicles (NASDAQ:ZAPP) stock is rising higher on Thursday without any news from the electric motorcycle company.
There are no new press releases for filings with the Securities and Exchange Commission (SEC) that explain why the company’s stock is up today. On that same note, there’s no new analyst coverage that would cause ZAPP stock to rally.
Even so, shares of ZAPP stock are taking off alongside heavy trading of the company’s shares today. As of this writing, more than 4.4 million shares of the stock have changed hands. To put that in perspective, the company’s daily average trading volume is closer to 107,000 shares.
Of course, investors will note that ZAPP is a penny stock. This comes from its market capitalization of just $30.229 million, as well as the low closing price of 55 cents per share on Wednesday.
What That Means for ZAPP Stock
Being a penny stock opens ZAPP up to manipulation as it makes it easy for retail and day traders to invest in the company. This is something we’ve seen in the past as these traders pump stocks up in the morning, only for them to lose that ground in the days to come.
If that’s what’s happening with ZAPP stock today, traders will want to be careful about taking a stake in the electric motorcycle company. There’s a real risk of being stuck holding the bag with ZAPP shares.
ZAPP stock is up 69.1% as of Thursday morning but was down 94.7% year-to-date as of yesterday’s close.
Investors seeking out even more of the most recent stock market news today will want to keep reading!
InvestorPlace is home to all of the hottest stock market happenings traders need to know about on Thursday! That includes the biggest pre-market stock movers today, the latest news on “Magnificent Seven” stocks and more. All of that news is ready to go down below!
More Thursday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- Warning! What a ‘Magnificent Seven’ Stocks Meltdown Would Mean for the Market.
- Wells Fargo Slams ROKU Stock With Q4 Warning
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.
