Key Points
- Poet shares rose last month despite a steep drop on reports of order cancellations.
- The company’s stock price has continued to climb in May, with no publicly visible updates.
Why Poet Stock Gained 19.9% Last Month and Is Skyrocketing in May:
Poet Technologies (POET +14.16%) saw large swings in April trading but closed the month on a high note. The fibre-optics provider’s stock surged 19.9% in the month’s trading, well outpacing the S&P 500’s strong 10.4% rise and the Nasdaq Composite’s even more remarkable 15.3% jump.
Poet stock had significant positive momentum last month, in line with larger market trends, as investors quickly purchased back into artificial intelligence (AI) equities after sell-offs the prior month. The stock also benefited from the catalyst, as well as sharp valuation increases driven by contract speculation and news, but there was a catch. A wild month for poet investors.
Poet’s stock climbed on risk-on trading that influenced broader market movements last month, and the company’s stock gained during the first three weeks of April trading amid speculation about its order forecast. Stocktwits released
Among other topics raised in the interview, Mika acknowledged Poet had a deal with Celestial AI, a startup that had been bought by Marvell Technology. Marvell’s announcement of extending its cooperation with Nvidia and winning additional AI market share triggered a big rise.
Alas, expectations for a deal with Marvell were quickly crushed — and Poet’s stock relinquished its spectacular gains in the post-news period. Poet said in a news statement on April 27 that Marvell sent the company a notice of contract termination for breaches of the contract’s disclosure provisions. But even after a massive sell-off on the cancellation of the acquisition, Poet stock still closed April with substantial profits.
April was a wild month for Poet investors
Poet stock climbed on risk-on trading that influenced broader market movements last month, and the company’s stock rose during the first three weeks of April amid speculation about its order forecast. Stocktwits released an interview with Poet CEO Thomas Mika on April 21, and investors received the good news they’d been waiting for.
Among other topics raised in the interview, Mika acknowledged Poet had a deal with Celestial AI, a startup that had been bought by Marvell Technology. Marvell’s announcement of extending its cooperation with Nvidia and winning additional AI market share triggered a big rise.
Alas, expectations for a deal with Marvell were quickly crushed — and Poet’s stock relinquished its spectacular gains in the post-news period. On April 27, Poet issued a press statement stating that Marvell sent them a notice of cancellation of the order because of breaches of the contract’s transparency requirements. But even with the large selloffs that followed the acquisition’s collapse, Poet stock still ended April with substantial profits.
Poet stock is roaring higher in May.
Poet’s stock has been on a huge climb this month after a large dip late in April. The company’s stock is up around 50% this month — beating the S&P 500’s 2.6% gain and the Nasdaq Composite’s 5.3% rise.
Bullish momentum in the wider market has certainly helped support Poet’s surge, but the gains are eye-catching given that they have come without any substantial business news for the firm being made public. Investors may be speculating that the company’s order forecast remains good despite Marvell’s order cancellation, and meme stock trading may also be contributing to the increases.
Poet’s strong surge in May raises some fascinating questions, and investors may be wondering whether to hold the stock in anticipation of a large new contract. While the company may continue to climb, investors should see Poet shares as a speculative, high-risk investment.