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ear (NASDAQ:EAR) the stock doubles by mid-morning. This follows the recent trend of little-known stocks jumping by huge amounts, based on speculation, over short periods of time. Other names that have seen similar moves in recent days include Digital AMTD (NYSE:HKD), AMTD idea (NYSE:AMTD) and MAIA Biotechnology (NYSE:MAIA).
Eargo, which is trending on social media this morning, sells and markets hearing aids. There doesn’t appear to be any company-specific news sending this stock today. On the contrary, the stock EAR is skyrocketing on pure speculation.
More information about Eargo
The company claims to offer “low-profile design…in-home screenings, customization by you, for you, and 24/7 mobile support.” The company adds that its hearing aids make hearing “virtually invisible”. He promises that only users themselves will visually notice his hearing aids and users will “barely feel them”.
Eargo CEO Christian Gormsen has led the company since 2018. Prior to this role, he served as Chief Commercial Officer, EMEA, ISS, which provides installation services to many large companies. From 2009 to 2012, he was Senior Vice President at GN ReSoundwhich also markets hearing aids.
In a May 24 filing with the U.S. Securities and Exchange Commission (SEC), Eargo said “negative cash flow and the current lack of financial resources raise substantial doubt about our ability to continue our business.” “. The company has indicated that it may have to issue additional shares of EAR to raise funds.
Finally, he noted that due to regulatory issues, he had stopped accepting insurance from his clients. The move negatively impacted its financial results and “could negatively impact the Company’s liquidity and working capital,” Eargo said in the filing.
As of the date of publication, Larry Ramer had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.