Market participants eyeing Qutoutiao Inc. (NASDAQ: QTT) awoke to positive news this morning, with the stock’s bullish momentum fully underway in the current market. Following Friday’s 10% climb, QTT rose today by a staggering 36.3%, causing an uproar in the market, further causing hype. In fact, this growth spurt comes in continuation of last week’s impressive climb, seeing QTT price balloon by 1.5 times. These movements for the China-based mobile content aggregator come as a much-awaited relief following from its prior performance. The stock had been on a persistent downward trajectory for the prior six months losing 77% in value during this time. Seeing these loss reversals within a week are a major breakthrough for QTT investors.
QTT Riding the Chinese Growth Wave
Although no company-specific report or disruption has surfaced, the cause in this upward climb is linked to broader, macroeconomic reasons. Chinese stocks in general, last week, significantly shot up, following an announcement by China’s State Council. This communicated the government’s commitment to support and facilitate Chinese stocks globally listed in major exchanges. Seeing the implications of an announcement at such a level, the market saw a Chinese stock rush, and price soaring. Most of the Chinese big winning stocks today trace their growth spurt to last week, owing to the aforementioned announcement.
QTT is no exception to this, seeing its six-month long bearish trend suddenly reversing into a steady climb. This climb, not only survived the initial hype period, but persisted through the uncertainties of the weekend, and shot up significantly this morning.
QTT Amongst This Weeks Survivors
For most of the Chinese stocks riding last week’s wave, the hype was short lived, and demand had shortly stabilized. Fears of a Covid resurgence, following reports of wide lockdowns in China, brought numerous Chinese stocks back down to earth. Despite this, QTT not only sailed through, but saw monumental growth into today’s trade session. In fact, the circumstances driving down other stocks may be the cause for this shoot up. With resurging anticipations of wide-scale Covid lockdowns in China with a new variant, QTT may excel. Lockdowns heighten demand for digital entertainment and online mobile content for its users. Serving the People’s Republic of China, Qutoutiao Inc could potentially realize substantial growth and profitability.
Riding last week’s Chinese growth wave, QTT has soared tremendously. Where other Chinese stocks restabilized with the hype dying down due to Covid concerns, QTT remains in demand. The reason for this is the growth and earning potential during lockdowns, given demand for digital content and online entertainment.