Why Volatile Growth Stocks Unity Software, Newegg, and Bandwidth Skyrocketed on Friday
The stock market has been rough for volatile growth stocks in 2022. Investments viewed as high-risk ideas due to limited earnings or heavy reliance on debt financing have taken a beating this year, often losing more than half of their market value.
The same volatile tendency also set up the same group of stocks to outperform the broader market on a good day, even if the companies don't have any clear reason of their own to skyrocket that day.
These trends continued to play out on Friday. Surprisingly pleasant reports on inflation and shortened COVID-19 quarantines for travelers to China started a marketwide rally on Thursday, and the good times kept rolling on Friday. That was all it took to push many growth stocks higher by double-digit percentages.
Source Fool.com
