Despite HTC’s poor revenue report for the month of February, investors are clamoring to purchase HTC stock. After gaining 9.9% on Friday, HTC’s stock price saw another surge on Monday which pushed the price of the company’s stock up 10% and forcing the Taiwan stock exchange to close out trading of HTC’s stock for the day. The most surprising aspect of the 10% surge in HTC’s stock price is that it followed news that HTC’s revenue for February came in at NT$4.20 billion (roughly $129 million USD) – the lowest monthly revenue reported by HTC in over a decade.
The increase in the company’s stock price is good news for HTC as it give them some financial leverage. The higher stock price means that HTC would be able to raise more capital by issuing more shares of its stock – something that HTC is likely considering since its cash reserve has taken a serious hit over the past year. There’s no way of knowing if HTC’s stock price will continue to rise, but there’s a good chance it will creep a little higher before it stabilizes.
Source: Google Finance
