Key points:
- Agrify stock soared 34.9% despite the lack of news from the firm.
- The cannabis infrastructure company has a running offer on its products.
- The steep discounts have attracted a swarm of investors to buy its stock.
The Agrify Corp (NASDAQ: AGFY) stock soared 34.9% despite the lack of news from the cannabis infrastructure development company. The move could be attributed to an influx of buyers interested in the company’s shares after it unveiled an October offer on all its products.
The manufacturer of critical equipment used by cannabis companies announced significant offers on its products, including $1,100 off its Bluezone equipment, whose recommended retail price was slashed from $4,500 to $3,400.
Also read: The Best Fairtrade Stocks To Buy Right Now.
The company also slashed the price of its CVO-5 Double Up Package from $42,400 to $32,000 to attract new customers, with the offers running up to October 31st 2022. Investors seem to have picked up on the offers and have flooded in, triggering the rally in Agtify stock.
The question remains, will the current rally translate into a sustained uptrend? The short answer is we do not know, given that it appears to be driven primarily by retail traders who usually flock to penny stocks that trade below $1.
However, in Agrify’s case, we can argue that the rally is driven by the steep discounts offered by the company to customers this month. The rally may last the entire month, but for this to happen, the buyers must keep buying, which is not guaranteed.
Agrify stock is set to benefit from the expected recovery in the cannabis industry as cannabis producers recover and new startups that need its equipment enter the market, which has been in a bearish trend from early 2021.
A surge in new cannabis producers could fuel a sustained rally in Agrify stock, but nothing is guaranteed in the markets. Only time will tell if the rally in Agrify stock will evolve into a medium to long-term trend.
So, would I buy Agrify stock? The answer is maybe. Agrify may be the perfect fit for investors comfortable buying penny stocks. Still, I would wait for several green days before buying the stock to confirm the uptrend.
*This is not investment advice.
Agrify stock price.
The Agrify stock price soared 34.90% to trade at $0.63, rising from Tuesday’s closing price of $0.4670.