- SOS shares drop nearly 10% on Thursday to $5.25.
- SOS is a retail-loved stock and highly volatile.
- SOS shares rose 28% on Wednesday as retail jumped in.
SOS shares are as usualy highly volatile, giving up some decent gains posted on Wednesday. As ever traders need to use extreme caution when trading this one as it is susceptible to sharp swings based on rumours, fact, mania etc!
SOS is a Chinese company involved in providing cloud-based emergency services to businesses and individuals. SOS provides information security solutions for emergency roadside assistance, emergency healthcare, and emergency living assistance. SOS also has an involvement in the cryptocurrency mining business.
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SOS stock news
SOS shares have been strong in 2021 with a gain of 250% plus so far. The main reason for this has been the company getting involved in the cryptocurrency mining sector and blockchain.
Back in February, SOS was the subject of two bearish articles by Culper Research and Hindenberg Research. SOS rebutted these arguments, and subsequently, Scorpio VC issued a bullish research piece.
On March 29, SOS announced a joint venture with Qingdao Ronghe Finance to establish a supercomputing centre. The next day March 30 SOS announced the pricing of its registered direct offering to raise $125 million. The raise is done by way of a sale of 25 million American Depository Shares (ADS) and warrants at $5 each. The purchase price for one ADS and one corresponding warrant is $5. The warrant will be exercisable at issuance and have a five-year expiration. SOS said the offering was to close on or around April 1.
Recent developments have seen SOS announce it has installed a second batch of crypto mining machines and gave an outlook that it expected to mine at least 41 bitcoins and 909 etherum in Q1 2021.
SOS shares spiked this week as retail traders were rumoured to be buying the stock as a possible short squeeze target. SOS appreciated strongly on Wednesday by 28% but have failed to hold those gains as the volatility in the stock continues!
Trade carefully with this one, some traders love the volatility and can reap nice profits just know what you are getting into. This one is volatile.
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