Cue Health (NASDAQ:HLTH) stock is up on Thursday despite the healthcare technology company recently announcing plans to wind down its business.
Cue Health revealed earlier this week that it’s closing up shop with its Chapter 7 bankruptcy relief filing. This also saw it terminate all employees, including executives and members of the board of directors.
News of Cue Health filing for bankruptcy resulted in its shares taking a nearly 40% beating on Wednesday. That came with heavy trading as some 70.9 million shares exchanged hands. For comparison, its daily average trading volume is about 9.2 million shares.
However, HLTH stock is on the rise Thursday, with the stock up by 98.9% as of this morning. That comes with more than 82 million shares traded during pre-market hours.
What’s Behind the HLTH Stock Rally?
The company’s bankruptcy filing is likely causing extreme volatility in its shares. It’s also likely that certain traders are using the dip yesterday to buy and pump up the shares. That also means they’re likely to dump the stock for profits soon.
This means that traders should be incredibly careful about taking a stake in HLTH stock right now. While shares are currently up, that isn’t likely to last long, considering its bankruptcy filing.
Investors will want to stick around for even more of the most recent stock market stories today!
We have all of the hottest stock market news available on Thursday! That includes the biggest pre-market stock movers and other hot topics worth checking out. You can catch up on all of these matters at the links below!
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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.
