Canada based sustainable ride share and technology firm Facedrive Inc (OTCMKTS:FDVRF) had seen its stock emerge as one of the biggest gainers earlier on this year but eventually things changed dramatically.
However, on Thursday the Facedrive stock made a strong recovery and ended the day with gains of as much as 123%. While such massive gains are expected to bring the stock into focus among investors, it should also be noted that it is still down by 85% so far this year. That being said, it is also important for investors to be cautious when they consider the stock.
The company has no sales at this point but despite that it attracted massive interest from investors earlier on in the year and ended up hitting a market cap of as much as $4 billion.
The eventual crash in the stock was perhaps an illustration of the fact that it is perhaps not a good idea to go after a stock merely because of hype. At the end of the day, the fundamentals of the business do matter in the long term. Such dramatic falls are not uncommon for stocks which do not have the strongest of fundamentals.
