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Face drive (TSXV: FD) Stocks, a tech company building a sustainable and equitable ride-sharing platform and one of the most popular growth stocks among investors in 2021, traded for a few more days last week. had.
This happened after weeks of high volatility following a large sale of Facedrive shares over months. Over 95% of its value.. Volatility wasn’t as pronounced as it was in the past, but last week’s stocks still showed a volatile share of trading.
As you can see, Facedrive’s share price fell to 15% on Tuesday and Wednesday, reaching more than 10% in the week on Thursday. But in the end, stocks fell another 6% to end the week.And today it is Market capitalization It’s just over $ 110 million.
Facedrive is a particularly speculative and therefore highly volatile stock. However, although there was still some variability last week, it was a quiet week for Facedrive, relatively speaking.
One of the reasons Facedrive’s inventory didn’t fluctuate so much was that this week’s volume was much lower. Facedrive is a speculative stock, so as volume increases, the price of Facedrive stock will fluctuate significantly.
Last week there was a volume of over 9 million shares. It was about the same as the previous week. But two weeks ago, about 15 million shares were traded, and more than 13 million shares were exchanged the previous week, the week when Facedrive saw a ton of volatility, Thursday and Friday alone. ..
This shows how much volatility can move a stock. Also, since Facedrive is already a company with a low market capitalization, the price may fluctuate significantly due to a large increase in sales volume. Therefore, when investing in Facedrive stock, it is important to choose your entry point wisely and plan to hold it for the long term. But are today’s stocks even worth a long-term investment?
Is Facedrive Stock Worth Buying?
in the meantime Face drive We started building a fair and sustainable ride-sharing platform, but the timing was disappointing. Pandemics have definitely changed our lives, and so far, one of the services that is seeing much less demand is ride sharing.
In addition, Facedrive shares were already facing fierce competition with two giants in the field. Uber When Lyft.. As a result, the company shifted its focus and sought to grow other segments of its business. In addition to adding food delivery services, Facedrive also offers health technology services to build its own e-commerce platform.
However, so far, sales have been sluggish. Over the last 12 months, Facedrive’s total revenue has been only $ 13 million. Therefore, even at a valuation of $ 110 million, the stock price appears to be slightly overvalued. Therefore, today’s investment is still quite speculative.
Currently, there are many uncertainties about the future of Facedrive stock. In addition, as bond yields have risen in recent weeks, it and many other tech stocks are facing rising headwinds.
So for now, I’ll postpone my investment in Facedrive and monitor my inventory for some progress in the coming months. But if you want to take a position, I make sure you invest the money you are willing to lose. In addition, long-term investment is important to avoid short-term speculation and volatility.
Why Facedrive shares fell 6% last week
https://www.fool.ca/2021/10/11/why-facedrive-stock-fell-6-last-week/ Why Facedrive shares fell 6% last week