Chinese education company GSX Techedu spiked early this morning on second quarter numbers, but sunk back down as of this morning.
A press release today shows the company’s revenues increased over 400% year-over-year and non-GAAP gross profit margin increased to 72.6% from 61.5% year-over-year.
Net revenues increased 437.9% year-over-year.
All of this led GSX stock to spike up from around $16 to $17.47 this morning, but as of 10:30 a.m., the stock is back down to $15.90.
Despite the slump back toward lower values, some are still bullish.
“You simply have to look deeper than the share price and explore the fundamentals and future growth potential,” writes Edward Bosworth at FindNews. “The stock value has climbed by nearly 8.7% to $15.93 from its previous close of $14.65. Does this growth mean it the best stock to buy right now?”
Bosworth notes that GSW shares are having an active trading volume day with 355973 contracts reportedly racked up so far in the trading session.
“GSX shares had a relatively better volume day versus average trading capacity of 1.16 million shares, but with a 0.14 billion float and a 2.88% run over a week, it’s definitely worth keeping an eye on,” Bosworth writes.
GSX’s current value is still a pretty good one compared to one-month values with the stock under $12 in late July and on a parabolic curve toward all-time highs from an initial value around $10. Still, the deflation of the premarket gap can be seen as a cautionary sign for investors looking to get into some of the biggest movers on today’s market.
