What happened
Since going public in June 2020 at $5.23 per share, Ebang International Holdings (NASDAQ: EBON) stock has been a dud, down over 90% from its all-time high. However, the stock surprisingly caught a bid today with extreme trading volume. This caused Ebang stock to be up a whopping 24%, as of 3:15 p.m. ET.
So what
Ebang International manufactures machines for mining cryptocurrencies and came public with big aspirations to expand into ancillary cryptocurrency businesses. The company rarely issues press releases, and there weren't any today. But according to Yahoo! Finance, trading volume today for Ebang stock was more than four times what it normally is -- nearly 12 million shares had traded hands as of this writing.
Image source: Getty Images.
Now what
Long-term shareholders can safely disregard today's outsize move, considering it wasn't predicated on something fundamental to the business. A stock that spikes like this on no news can just as easily plummet later. Therefore, it's important to not let short-term movements distract from the underlying fundamentals.
For Ebang, we last got a financial update in October. In the update, management said revenue for the first half of 2021 increased 66% from the comparable period of 2020, to $18.3 million. However, it still registered a net loss of $4.3 million, and its share count had increased 51% in just one year.
Ebang had been gearing up for launching a cryptocurrency exchange. But considering the company is based in China (and China has banned all cryptocurrency activity), it will be interesting to hear what management has to say when it reports financial results in coming weeks.
At this time, Ebang hasn't set an earnings date.
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Jon Quast has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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