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Highlights
- Stocks of ridesharing company Facedrive Inc (TSXV:FD) soared by nearly 61 per cent on Monday, November 1.
- It hit a daily trading volume of almost three million.
- On a quarter-to-date level, Facedrive’s stock currently reflects a growth of nearly 17 per cent.
Stocks of ridesharing company Facedrive Inc (TSXV:FD) soared by nearly 61 per cent on Monday, November 1, hitting a daily trading volume of almost three million.
The tech stock swirled up to score a day high of C$ 1.66 per share before closing the session at a value of 1.59 apiece on Monday.
What could have led to this surge in the price of Facedrive shares? Let’s find out.
Why Facedrive Inc (TSXV: FD) stocks could have surged?
Right before the markets closed down for the week on Friday, October 29, Facedrive Inc put out a statement announcing the retirement of a board member.
The sustainable technology-focused enterprise said that Paul Zed was set to retired from his post in the board effective October 30.
The company said it is still in the process of finalizing a replacement for Mr Zed.
Another factor that could have fueled Monday’s price surge was a meme rally, as it has reportedly in the past for FD stocks.
Also read: 2 Canadian penny stocks under $1 to buy in November
How have Facedrive stocks been performing?
Facedrive stocks had begun 2021 with a notable performance, reflecting triple-digit surges in just 30 days. However, many attributed this growth to the meme stock rally that came in the wake of the GameStop (NYSE: GME, GME:US) spree.
This speculation gained strength as, with the fall of the meme stock rally, Facedrive shares began to lose momentum as well.
The renewable energy stock is presently down by more than 90 per cent on a year-to-date (YTD) basis, while dwindling by nearly 84 per cent on a one-year scale.
FD scrips have also fallen in value by almost 90 per cent in the past six months and by about 83 per cent in the last 90 days.
However, on a quarter-to-date level, Facedrive’s stock currently reflects a growth of nearly 17 per cent. So, it could be breaking out of the bearish sentiment.
Also read: Top 5 TSX value stocks to buy
Bottom line
Facedrive saw its topline surge to C$ 5.79 million in the second quarter of fiscal 2021, which was notably up from that of C$ 93,615 in the same period a year ago. While its revenue from the Rideshare segment was up to C$ 80,110 in Q2 2021, its revenue from the Foods division climbed to C$ 4.97 million.
At the end of the first six months of 2021, Facedrive also noted a cash totaling of C$ 12.22 million and a working capital of C$ 10.32 million.
While its stock performance may have been on the lower side this year, Facedrive has reported a significant revenue rise in the latest quarter. At the same time, the sustainable space has been gaining attention amid rising climate awareness.
Nonetheless, investors should always weigh in all parameters before parking their funds anywhere.
