Meiwu Technology (NASDAQ:WNW) stock is rocketing higher on Tuesday despite a lack of news from the Chinese online and mobile commerce company.
There have been no new press releases or filings with the Securities and Exchange Commission (SEC) that explain why the stock is up today. Likewise, there’s no new analyst coverage that would act as a catalyst for this rally.
Even so, shares of WNW stock are on the rise alongside heavy trading of the shares. This has more than 7.7 million shares of the company’s stock changing hands as of this writing. That’s already well above its daily average trading volume of about 3 million shares.
Investors will want to keep in mind that WNW is a penny stock. This comes from its low closing price of 9 cents yesterday alongside its market capitalization of just $9.03 million.
Why That Matters for WNW Stock
Being a penny stock opens WNW shares up to volatility. That’s doubly true outside or normal trading hours.
That volatility is often caused by retail and day traders pumping up the penny stock for profits. However, jumping in now could leave investors seeing red as these traders are likely to dump the shares in the near future.
WNW stock is up 21% as of Tuesday morning.
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We’re offering up all of the latest stock market news that traders need to know about on Tuesday! That includes the biggest pre-market stock movers, the latest news concerning CommScope (NASDAQ:COMM) stock and more. All of that news is ready to go down below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
