QMMM Stock Price Takes Sharp Dive, Declines Over 40%
On September 10, QMMM stock faced a important downturn, plummeting by more than 40%. this steep decline made it one of the worst-performing stocks on Wall Street.
Following the initial hype surrounding its declaration of entering the crypto world, QMMM’s stock had risen sharply. However, the subsequent fall wiped out much of those gains. Investors grew wary of the stock’s valuation and the uncertainties around the emerging crypto strategy industry.
Shares of the Nasdaq-listed QMMM dived to $113, marking a 63% drop from its recent peak. Consequently,its market cap shrank to approximately $6.9 billion.
QMMM, based in Hong Kong, grabbed attention earlier in the week by soaring over 4,000%. The catalyst behind this surge was its revelation of plans to venture into cryptocurrency.The firm intends to develop a platform that combines AI and blockchain tech for crypto analytics and autonomous organizations.
- The company plans to set up a $100 million cryptocurrency treasury featuring BTC, ETH, and SOL.
- This treasury aims to stand out due to its variety compared to recent launches.
the sharp slide in QMMM could be attributed to profit-taking by investors capitalizing on the previous day’s massive gains. Such reactions are typical for stocks or cryptocurrencies experiencing sudden surges.
Technical factors also played a role in QMMM’s drop. The stock entered the Wyckoff theory’s markup phase during its rise but soon transitioned into distribution and markdown phases, leading to the crash.
furthermore,concerns loom over QMMM’s overvaluation. the company’s latest financial report indicated a revenue dip to $2.6 million from $2.8 million in the previous year. Net losses also increased to $1.58 million from $1.29 million.
As the crypto strategy hype fades, it seems QMMM might continue to struggle in the coming weeks.
