Hour Loop IPO dips drastically after gaining 99%

The Hour Loop company started trading on NASDAQ under the ticker HOUR on Friday, January 7, 2022. The stock started trading at the price of $4 per share. During the trading session, the stock gained over 158% and reached the peak trading price of $10.31 per share. Moreover, the stock closed at $7.99, up by a whopping 99.75% (gaining 3.99 points).

However, today’s pre-market session has not been great for this new stock market entrant. The HOUR stock dipped 5.51% and was priced at $7.55 (down by 0.44 points) at 8:25 a.m. ET. After a huge surge on its first day, investors surely weren’t expecting such a negative performance by the stock. However, the trading session is yet to be witnessed. The stock might change its course then. Moreover, the stock is still 88.75% up from its launch price. Therefore, one can expect it to rebound from the losses caused in the pre-market session.

The market capitalization of the stock stood at $278 million. The share volume traded on the previous day was 50,186,513, which was much higher than the 1.5 million shares that were issued on Friday.

Hour Loop and its IPO

Essentially, Hour Loop is an Amazon third-party merchant (NASDAQ:AMZN). This business specialises on a few retail categories, including kitchenware, clothes, home & garden, and electronics. This company, according to several sources, sells over 100,000 stock keeping units with the e-commerce giant- Amazon.

As a result of the offering, the business received gross aggregate proceeds of about $6 million. Moreover, Hour Loop made $2.3 million in net income on $31.4 million in revenue in the most recent nine months, according to the company’s records.

Revenue and earnings of the company both increased significantly year over year, growing by 80% and 83 percent, respectively. Further, an over-allotment option for additional 225,000 shares was granted, which is expected to be filled sometime soon.

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