Qutoutiao Inc QTT shares closed over 61% higher today.
What Happened: No singular news event prompted the surge in the stock of the Shanghai-based mobile entertainment firm and technical factors were more likely responsible.
A short squeeze was the likely reason behind the jump in the Qutoutiao stock, according to the Motley Fool.
The trading volume for Qutoutiao on Thursday amounted to 119.96 million shares, whereas the average volume stands at 2.13 million.
Why It Matters: In July, China’s state broadcaster CCTV accused Qutoutiao of running false advertisements related to weight loss and for promoting gambling, the South China Morning Post reported.
The accusation led to a subsequent apology by Qutoutiao. The company's shares dropped 62% from $4.19 on July 06 to $1.59 by the end of 2020.
The content aggregator’s third-quarter revenue fell by 15.45% to $166.4 million on a year-over-year basis missing the estimates of $174.9 million.
Price Action: Qutoutiao shares closed 61.34% higher at $4.34 and fell 2.07% in the after-hours session.
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