Exela Technologies (XELA) Stock Falls Sharply From the Peak: What Next?
3:55 pm Wednesday, August 18th, 2021
The meme stock phenomenon in the stock market this year was one of the most remarkable trends to have ever emerged and as a result, there are many unheralded stocks that have quickly come to the attention of investors.
Not too long ago the meme stocks had a bit of resurgence but in recent days; most of the stocks have lost momentum. However, the Exela Technologies (NASDAQ:XELA) stock has been one of the few exceptions in this regard. The rally in the stock started in the middle of June and since then it has had a steady ascent. The company is involved in providing services related to business process automation to as many as 4000 clients. Most of the company’s clients can be classified as SBMs or small and medium-sized businesses.
A rally brought about by a classic short squeeze was the reason behind the rally in the stock in recent weeks and if history is anything to go by then the stock may be subject to another such move.
However, it is difficult for investors to bet on such a move and especially so at a time when the trend with relation to meme stocks seems to be on the way out. In the second-quarter results that were announced last week, Exela reported revenues of $293 million, which reflected a year-on-year fall of 4.8%, and on top of that, the debts stood at a staggering $1.3 billion. Hence, it can be argued that on a fundamental level there might not be a lot going on for Exela and a short squeeze might be the only hope for the stock at this point.
