Baosheng Media Group Holdings Ltd (NASDAQ: BAOS) stock price surged 119.1% despite not making any significant announcements in the recent past.
It appears retail investors are behind the latest move higher in BAOS stock price as the stock gained popularity in most social media platforms frequented by retail traders.
BAOS stock rallied higher as retail investors piled in, given its low price and low float of outstanding shares, making it susceptible to a quick pump.
Retail investors are now in the habit of identifying stocks trading at low prices with very few outstanding shares and singling them out for quick pumps driven by buying pressure.
These low float stocks are shared on social media platforms such as Reddit with hundreds of retail investors who then buy the stock in droves pushing its share price significantly higher.
The frequency of such moves by large groups of retail investors has led to rising numbers of quick pumps and dumps as the traders chase quick gains each day.
The last major announcement from Baosheng Media was the release of its financial results for the first half of 2021 on September 30, 2021.
At the time, the China-based marketing technology solutions provider reported that its revenues had shrunk 75.4% to $2.4 million from the $9.8 million recorded last year.
However, the company still made a gross profit of $1.4 million, which pales compared to last year’s $9.2 million gross profit.
Baosheng Media later announced the expansion of its Ocen Engine business after partnering with well-known companies in the real estate, eCommerce, education, gaming, automobile, healthcare and finance industries to provide them with in-feed advertising services.
There has been no other significant fundamental news from the company since the September 9, 2021 partnership announcement to support today’s massive rally.
As astute investors, we have to start expecting pump and dump schemes daily, which can trigger massive moves in the affected stocks.
*This is not investment advice.
Baosheng Media stock price.
Baosheng Media stock price surged 119.1% premarket to trade at $3.44, rising from Monday’s closing price of $1.57.
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