SCWorx (NASDAQ:WORX) Stock Consolidates After The Big Jump; What Next?
10:21 am Wednesday, August 25th, 2021
The rally that has been in certain stocks this year due to a combination of the efforts of retail investors who are active on social media and manic short squeeze moves has been nothing short of remarkable. Most of those stocks are not particularly well known but have managed to record enormous gains due to short squeezes and one of the stocks that is now getting some traction among investors due to a short squeeze is the rather unheralded technology company SCWorx (NASDAQ:WORX).
The company has consistently made losses but in addition to that its market cap is low and the share float is low as well. The small float combined with the low market cap has made the SCWorx stock a viable target for many small traders.
While the shares have rallied and hit a high of $3.88 earlier this month on August 9, the market cap has not actually moved much and remains at $30 million. In addition to that, the number of available shares in SCWorx remains at 10 million.
The company is involved in providing healthcare companies with data and operates as a data warehouse. While it may seem that the business is a viable one, there are very few healthcare-related businesses which actually need the data that is offered by SCWorx. The losses have ballooned as well. In 2020, the company lost as much as $7.4 billion and in the first quarter of 2021, it has clocked losses of $750 million already. Hence, it is difficult to see how the rally might continue.
