The stock of Molecular Data Inc. (MKD) declined in the current market session after gaining value in yesterday’s regular trading session. The stock lost 2.75% in value to reach $0.24. In the last trading session, the stock closed at $0.25. The average volume of stock traded in the trading session was around 9.04 million.
Reasons For MKD Stock Decline:
Yesterday on 1st December 2021, the stock of Molecular Data Inc. (MKD) surged in the regular trading session when the company announced that they are starting a joint venture with GY Energy Tech. the purpose of the joint venture was to develop the diesel engines into more efficient energy trucks that will have truck battery separation mode. The joint venture will help to introduce stations that will help the truck owners to replace batteries efficiently; they will be from charge stations, battery replacement services, and management platforms for logistics.
When the news hit the market the interest of the investors increased in its stock and gained significant value. But the trading volume of the stock increased too much reaching almost 11 million in just 30 minutes. Due to which the stock of the company plunged due to excessive trading. The stock of Molecular Data Inc. (MKD) could regain its strength if the company announces further developments in the near future about the joint venture.
After the significant surge in the stock, the company’s stock plunged due to excessive trading volume. The news of the joint venture with GY Energy Tech made the investors excited about the stock of the company. But the rise in the stock was temporary and it reached the normal price. The company is yet to announce its results for the 3rd quarter of 2021; this will have a significant effect on the stock of Molecular Data. If the profitability of the company increased then the investors will not easily ignore investing in its stock.