EFTR - HLBZ Stock: What Is Going on With Red-Hot Helbiz Today?
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Today, another recent de-SPAC (special purpose acquisition company) Helbiz (NASDAQ:HLBZ) is seeing a lot of volatility. After declining 23% this morning at its lows, shares of HLBZ stock have more than rebounded, climbing 5% over yesterday’s close at the time of writing.
This incredible move is one that has made many investors’ heads spin. For day traders, this volatility is great. However, for most fundamental investors, this sort of price action is dizzying to watch.
Indeed, other de-SPAC companies such as eFFECTOR (NASDAQ:EFTR) and Hippo (NYSE:HIPO) have seen similar moves of late. Various high double-digit or even triple-digit daily gains have somehow become normal among de-SPAC companies.
Indeed, whenever I think the craziness has ended, that’s usually the calm before the storm.
Let’s dive into what’s driving investor interest in Helbiz right now.
HLBZ Stock Surging on Fleet Update
On Tuesday, Helbiz announced the company would be launching its first e-scooter fleet. This micromobility company (another term for an electric scooter company) has been on quite the tear since Tuesday. Indeed, shares have more than doubled over the span of two days, suggesting there’s something to this update.
What’s intriguing is that this move in HLBZ comes on news of the addition of one market — Durham, North Carolina. Currently, Helbiz reports that it is live in 35 cities globally. However, the fact that the company is aggressively expanding into new markets appears to be the headline investors want to read.
The company’s business model is one that’s relying on a tremendous amount of marketing right now to get the word out about its offering. Various promotions and offers will be doled out to get the company’s ridership up.
Currently, Helbiz is not yet making money. However, the company hopes that, at scale, this business model will be very successful. Helbiz charges $1 to unlock the device, plus 35 cents per minute to ride its e-scooters. Additionally, riders can opt for a $39.99 monthly plan to ride up to 30 minutes per day.
How successful these new market entries are remains to be seen. However, investors seem to like the momentum with HLBZ stock today. Accordingly, this will be an interesting stock to watch from here.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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