1. FOFO surged over 900% post-IPO, closing at $40.32. 2. Reported revenue for 2024 is only $2 million, with high related-party concentration. 3. Chairman Qian Fenglei has potential ties to a Web3 platform. 4. Hang Feng is categorized as a black box company with unclear financials. 5. Experts warn that post-IPO surges are often short-lived and risky.
The extreme price increase lacks substantial revenue and business clarity, raising concerns about sustainability. Historical IPOs that saw similar surges often experienced steep declines shortly thereafter.
Market reaction is crucial given FOFO's severe volatility and lack of solid fundamentals. The unclear motives and potential ties to a Web3 platform may generate speculation but also caution among investors.
Anticipated profit-taking and potential sell-offs from retail investors may harm stock performance soon. Previous examples show microcap IPOs frequently face price corrections within weeks.