Why LAIX Stock Price Increased Over 100% in Pre-Market
LAIX is an AI company that provides online English learning products and services in China.
Since the company has not announced any news directly and there are no SEC reports to trigger a stock price increase, it appears there was a coordinated move on social media to drive the price up, similar to the reason why ATA Creativity Global went up more than 936% yesterday.
I am seeing references to LAIX in stock trading groups on Facebook, Discord chat rooms, stock trading subreddits, Twitter hashtags, and YouTube channels before the market open. Many of these posts mentioned the advantages of the high volume and relatively low float of the stock.
I noticed a user on StockTwits point out that the short percentage yesterday was 85% and there were no available shares to short on WeBull. “If you’re short on this ticker may I suggest you cover now before it gets out of control,” warned the user.
Since the business model appears to be similar to ATA Creativity Global, it also appears that there is a sympathy play in effect as well. And since the company shares have a relatively small float and there is a high squeeze probability, day traders are also jumping on LAIX.
pulse2.com/laix-stoc...ket-why-it-happened/
LAIX is an AI company that provides online English learning products and services in China.
Since the company has not announced any news directly and there are no SEC reports to trigger a stock price increase, it appears there was a coordinated move on social media to drive the price up, similar to the reason why ATA Creativity Global went up more than 936% yesterday.
I am seeing references to LAIX in stock trading groups on Facebook, Discord chat rooms, stock trading subreddits, Twitter hashtags, and YouTube channels before the market open. Many of these posts mentioned the advantages of the high volume and relatively low float of the stock.
I noticed a user on StockTwits point out that the short percentage yesterday was 85% and there were no available shares to short on WeBull. “If you’re short on this ticker may I suggest you cover now before it gets out of control,” warned the user.
Since the business model appears to be similar to ATA Creativity Global, it also appears that there is a sympathy play in effect as well. And since the company shares have a relatively small float and there is a high squeeze probability, day traders are also jumping on LAIX.
pulse2.com/laix-stoc...ket-why-it-happened/