Poet Technologies (POET +14.30%) stock roared higher in Friday’s trading. The company’s share price surged 14.2% higher in a daily session that saw the S&P 500 gain 0.8%, and the Nasdaq Composite surge 1.7%.
Strikingly, Poet’s big gain today appears to have occurred despite no major news for the company. While the bullish momentum for the broader market helps explain some of the rally, the stock’s trading has been highly volatile and irregular lately.
Image source: Getty Images.
Is Poet stock a buy right now?
Poet stock has taken investors on a wild ride since CFO Thomas Mika confirmed in an April 21 interview that the company had an order in place from Celestial AI — a company that was acquired by Marvell Technology in February. The stock saw massive gains on the move, but the rally was quickly wiped out after Poet published a business update announcing that Marvell had moved to cancel the order. Now, it appears the rally is back on — and it’s not exactly clear why.
Today’s Change
(14.30%) $1.37
Current Price
$10.95
Key Data Points
Market Cap
$869M
Day’s Range
$9.81 – $11.83
52wk Range
$3.87 – $15.50
Volume
72M
Avg Vol
23M
Gross Margin
-20849.45%
Poet stock has moved 51% higher over the last week on no apparent news. While it’s possible that the stock could deliver massive returns if its photonics solutions find significant adoption in artificial intelligence (AI) applications, the outlook is highly uncertain right now. As a company that’s still effectively pre-revenue, there is a lot of guess work involved in charting its trajectory. With the stock surging despite no clear catalysts this week, I think the rally looks too risky to chase for most investors right now.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
