Microcap Stock uCloudlink Plunges After Nearly Doubling In Previous Session, Retail Buzz Refuses To Die Down

synopsis

Shares of uCloudlink Group, Inc. ($UCL), a mobile data-sharing marketplace in the telecommunications industry, jumped about 99% on Wednesday but gave back some of the gains in Thursday’s session.

The surge came amid a lack of major news that could have impacted the move. Retail buying was in play, going by the chatter. On Stocktwits, the 24-hour change in message volume was 333%. 

Wednesday’s rally took the stock to its highest level since Aug. 7, 2023. What is more interesting is that the upside was accompanied by a volume spurt —nearly 43 times the average volume. 

The stock, however, reversed course on Thursday and was last seen trading down 25.86% at $2.15.

Hong Kong-based uCloudlink reported third-quarter results in late November, which showed 5.6% year-over-year revenue growth to $25.2 million. The non-GAAP net income rose from $3.6 million to $3.7 million. Among the operational metrics, total data consumed through the platform fell 3.5% to 44,994 terabytes.

At the end of the September quarter, the company served 2,759 business partners in 61 countries and regions. 

uCloudlink allows users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing.

UCL sentiment and message volume December 19, 2024, as of 12:07 pm ET | Source: Stocktwits

On Stocktwits, sentiment toward uCloudlink stayed ‘extremely bullish’ (96/100), with the optimism accompanied by ‘extremely high’ message volume.

The shorted shares as a percentage of outstanding shares was 0.01% as of Oct. 31.

Short sellers have been unwinding positions in the stock, with the Yahoo Finance database showing the number of shorted shares dwindling month-over-month from 35,5700 to 5,430 as of Oct. 31. 

A retail watcher on Stocktwits saw the pullback as an opportunity to buy the stock. 

Thanks to the recent gain, uCloudlink is up about 68% for the year.

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