Ideanomics (IDEX) Stock Moves Back Above $3: Time To Buy?
5:31 pm Tuesday, June 08th, 2021
For many years, the Ideanomics (NASDAQ:IDEX) stock had performed poorly but things have changed in recent times. Over the course of the past 12 months, the stock has managed to deliver gains in excess of 600%, and in 2021 alone, it is up by 44%.
While these numbers may be impressive for the penny stock, it is also necessary for investors to take a closer look and make up their minds about the company. The gains this year may be eye-catching but it should be noted that the Ideanomics stock has lost as much as 50% since it hit its highest levels in 52 weeks in February this year.
It is necessary for investors to remember that penny stocks can be quite volatile and that has often been the case with Ideanomics as well. The stock corrected sharply after hitting its high in February mainly because the speculation on high growth companies came to an end at the time. The stock is primarily a speculative play at this point in time and hence, the associated risks are much higher. The company, which is based out of New York City, had initially been focused on financial technology.
However, it has pivoted to the potentially fast-growing electric vehicle space in recent times. That is a major leap for a company and it is also no surprise that Ideanomics has also run into a fair bit of trouble. Hence, at this point, there are lots of factors that might put off investors from the stock.
The most important thing to point out in this regard is the fact that experts do not believe that Ideanomics is an investment worth making at this point due to the volatility in the stock. However, at the same time, those who have a tolerance for risks could possibly choose to speculate on the stock.
