SOS Ltd – ADR (NYSE: SOS) is screaming for the top in the market this morning, following up on the gains we saw late last week after the company announced the early receipt of 5,000 cryptocurrency mining machines.
While the early receipt of the machines was exciting last week, what seems to be exciting this morning is an endorsement from Kevin O’Leary, also known as Mr. Wonderful, from Shark Tank. Here’s what’s going on:
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- SOS Stock Climbs Kevin O’Leary Endorsement
- What Is SOS Limited?
- Risks to Consider Before Buying SOS Stock
- Final Thoughts
SOS Stock Climbs Kevin O’Leary Endorsement
As mentioned above, late last week, SOS Limited found its way to the top after announcing that it had received 5,000 mining machines from the manufacturer earlier than expected. That’s exciting news as the company will be able to mine at a higher capacity, opening the door to significant revenue growth.
However, that’s not the big story today.
In a recent, minute long, video, Kevin O’Leary, commonly called Mr. Wonderful on the hit show, Shark Tank, endorsed the company.
Kevin O’Leary is no stranger to investing. As a venture capitalist, he makes millions of dollars per year through his investments and on Wall Street, especially among the retail investing community, he is held in high regard.
So naturally, when a celebrity like Kevin O’Leary jumps on a stock like SOS, investors start to take note, leading to increased volume and incredible price appreciation. That seems to be what’s going on today.
What Is SOS Limited?
So, what exactly is SOS Limited? Well, it’s a cryptocurrency play.
As you likely gather from the fact that the early receipt of 5,000 mining machines sent the stock screaming for the top last week, the company is actively involved in the mining of some of the most popular, and therefore, most valuable, cryptocurrencies on the market today.
However, the company isn’t just mining cryptocurrency. It is using the blockchain for the research and development of big data and cloud computing. Those are some hot keywords at the moment. In fact, SOS hits three of the top nails in tech on the head… cryptocurrency, enterprise data, and cloud computing.
All in all, SOS is a company that’s incredibly active in the top areas of technology as they stand today. No wonder the stock’s so popular among investors!
Risks to Consider Before Buying SOS Stock
Before you dive into SOS stock, there are some risks that you should consider. After all, there’s no such thing as an investment that comes without risk. In the case of SOS, the most significant risks to consider include:
- Lack of Analyst Coverage. SOS hasn’t captured the attention of any analysts quite yet. That means that the company isn’t particularly popular. Moreover, analysts tend to stay away from the riskiest of plays, so it could be a red flag that the stock is a high-risk investment.
- Pennies. SOS stock is a penny stock. As a result, the stock is subject to extreme levels of volatility, which could result in significant losses. Moreover, like other penny stocks, SOS is a company with a business model in an emerging market that hasn’t quite been proven yet, making the investment a bit of a speculative bet.
- Profitability. Like many other penny stocks, SOS is far from profitable. As a result, the company must survive on the money it has in the bank. If that’s not enough to get it to profitability, it will likely look to the market as a way to raise capital, leading to dilution for existing shareholders and declines in the stock price.
Although there are risks to consider before diving into SOS stock, you show me a risk free investment and I’ll dive in head first. The fact of the matter is that they simply don’t exist.
Nonetheless, things seem to be going well for SOS.
Sure, Kevin O’Leary getting behind the company is exciting, but what’s more exciting is the company’s operations. With the early receipt of 5,000 mining machines, the company has the potential to greatly expand revenu in the coming quarters, and may even reach profitability if demand for and prices of cryptocurrencies continue to skyrocket.
Moreover, the company’s work to use blockchain technology as an enterprise and big data solution is compelling. All in all, if you’re not already watching SOS stock, you’re likely missing out!