Retail frenzy continues! This 5-cent meme stock accounts for 15% of trading volume in U.S. stocks!
Healthcare Triangle Inc., a medical information technology company, has become one of the most actively traded stocks in the U.S. market, with its stock price soaring 115% to $0.05, accounting for 15% of the total trading volume in U.S. stocks. The total transaction value for the company on that day was approximately $150 million, indicating a frenzy of speculative capital inflow. Analysts pointed out that the surge in Meme stocks is mainly driven by discussions on social media and technological breakthroughs, lacking fundamental support, and there is a risk of market bubbles
Another meme stock has emerged, this time the protagonist is a little-known company with a stock price of only five cents.
On Thursday, Healthcare Triangle Inc., a healthcare information technology company, became the most actively traded stock in the U.S. market, with its stock price soaring 115% to just above 5 cents without any significant positive news driving it.
This little-known healthcare technology company saw a trading volume of over 3 billion shares that day, accounting for about 15% of the total number of stocks traded on U.S. exchanges that day. The stock price surged 138% at one point during the opening, closing with a gain of 115%. The company has not yet responded to the extreme price volatility.
According to Bloomberg data, the total trading value of Healthcare Triangle that day was approximately $150 million, nearly 7 times its market capitalization. Such a massive trading volume starkly contrasts with the company's size, highlighting the frenzied influx of speculative funds.
This phenomenon is the latest epitome of the recent meme stock craze.
Following significant price fluctuations in companies like Kohl's Corp., GoPro Inc., and Krispy Kreme Inc., more and more stocks are being swept up in this frenzy. This week, meme stock trading continued in the U.S. market, but the "darlings" of retail investors are changing rapidly. Kohl's, which closed up over 50% on Tuesday, fell 14.2% on Wednesday, while Opendoor Technologies, which had surged over 300% in the previous six trading days, has seen a decline for two consecutive days.
These phenomena reflect an extreme surge in market speculation sentiment, but lack fundamental support. Daniela Hathorn, a senior market analyst at Capital.com, stated that the significant surge in the stock prices and trading volumes of these meme stocks is mainly driven by social media buzz, short squeezes, and technical breakthroughs, despite no significant changes in the fundamental business of the related companies.
Regarding the enthusiasm of retail investors, analysts seem to agree: it’s not about whether a correction will happen, but "when" it will occur. Barclays has warned that certain corners of the market are showing clear signs of a bubble, which will eventually burst in some form, and it’s time for retail investors to hit the brakes.
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