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    Short-lived Hype for SKYX Platforms (SKYX)

    By Wasim Omar

    Aug 26,2022

    3:02 AM UTC

    SKYX Platforms Corp. (NASDAQ: SKYX) is a tech company with product lines aimed at homeowners of varying categories. Its share price has seen both a spectacular rise, as well as a timely drop in recent months. In this briefer, we aim to get to the bottom of this short-lived hype.

    The SKYX Upward Surge

    SKYX Platforms has been upon an epic growth trajectory going back to early July. The last two months have seen the stock climb rapidly from $2.25 to $4.43. This had been catalyzed as a result of the company covering serious ground towards the commercialization of its flagship product line. This includes a unique approach for homeowners to mount ceiling fans, which the company is launching in partnership with General Electric. The news raised the SKYX target price to a staggering $15 figure, which caused an investor frenzy. At the height of the news, the stock saw trade volume for the day exceeding 19 million shares. To put this into context, the last three months saw an average volume figure of a mere 770,000.

    Short-lived Market Hype for SKYX

    Despite all the signs of being a growth star, the SKYX rocket proved to be short-lived, with a rapid correction within just a week. This was in large part triggered as a result of the company’s second-quarter earnings release which underperformed according to expectations. The quarterly loss during the period was reported at $4.6 million, in comparison to the prior year’s comparable figure of only $1 million. The news had gone on to trigger uncertainty about the company’s future, despite progress with its SkyPlug product line.

    Conclusion

    Hype surrounding SKYX faded away as suddenly as it appeared in the market. The reason for such a quick end to its hype train seems to lie in the still speculative nature of the stock. Its product still awaits market launch, before which the market will continue to exercise caution. The risk and uncertainty surrounding the stock remain too high as of yet.

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