Qutoutiao Inc (QTT.US) stock jumped 61% higher yesterday. Initially there was no official news behind the surge in the stock of the Shanghai-based mobile entertainment firm and some traders believe that short squeeze was the likely reason behind the jump. Yesterday the trading volume for Qutoutiao amounted to 119.96 million shares, whereas the average volume stands at 2.13 million. Qutoutiao shares reached the highest level since March despite the fact that the company is still dealing with blowback from the accusation by Chinese state television (China Central Television, or CCTV). Back in July, Qutoutiao was accused of selling suspicious ads with false information at an awards show.
Later Sina Finance announced that Qutoutiao published an internal letter according to which company reportedly achieved an operating profit in Q4 of last year. If this rumor turned out to be true, then it would mean that Qutoutiao achieved a profit for the first time since it went public. This news spread quickly among investors via social media and many swing traders began to take large positions.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Qutoutiao Inc (QTT.US) stock erased majority of its yesterday gains after hitting $4.86 level amid profit taking. Currently price is testing support at $3.30. Breaking below it may trigger a bigger downward move. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
