Is Ideanomics Inc (NASDAQ: IDEX) Wild Speculation for Investors?

Ideanomics Inc (NASDAQ: IDEX) closed at $3.08 yesterday, up 8% on 18.12 million share volume. The market capitalization of this stock is $1.22 billion.  The day range for IDEX stock remains $2.86 – $3.09. This financial technology stock is appearing to be a volatile speculative holding, but if it manages to launch up the air, the investors are in for a big potential. The company reported Q1-2021 revenue at $32.71 million, moving up 8,553.17% on a YoY basis. Its net income for the reported quarter is $-573.00K, indicating a rise of 95% from a year before. 

Tracing the roots of this penny stock

For a good number of years, IDEX has been struggling. But this year, until now, the penny stock has remained 44% up. Over just one year, it has gone up more than 600%. But, if we look it under the microscope, the 52-week highs are down as much as 50%. So, there’s a hybrid picture view that’s presented of this stock. 

In the mid of February, the shares jumped up the trampoline. It is the same time when other high-growth and speculative stocks had topped out too. Thereafter, these stocks slipped into a painful bearish trance. Some group stocks fell 30-40%, while others witnessed a sharp decline of 70%. 

Potential of rewarding investors

Stocks like IDEX come with a potential of rewards to investors, which has also been visible in the past. IDEX has rallied over 1200% during the previous year, at some point in time. Even as IDEX remains painfully bearish, its record is a testimony of how fast things can take a turn for the better. But again, it reiterates the fact that using discipline with such volatile stocks is essential. Underscore the most important fact here- penny stocks are not everyone’s cup of joe! With IDEX constantly remaining speculative, ignoring this fact might turn out to be a mistake. 

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