Why VinFast Auto Stock Jumped Again Today
VinFast Auto (NASDAQ: VFS) went public through a special purpose acquisition company (SPAC) merger less than two weeks ago and the stock has made headlines ever since. Shares have soared by about 385% in just the past five trading days. That surge continued today with shares trading up by 20% as of 2:20 p.m.
Investors should be careful about trying to get in on the massive move higher. There is no business-related company news driving the move. Just the hype behind its recent public listing.
The stock is soaring not because of how successful the company is, but because of its low share count combined with investor excitement. The SPAC merger left 99% of the Vietnamese electric vehicle (EV) company in the hands of founder Pham Nhat Vuong. Barron's reports the company only has a float of about 16 million shares that can be publicly traded. According to MarketWatch the average daily trading volume is over 8 million shares.
Source Fool.com
