Up until a few months ago, the HUMBL Inc (OTCMKTS:HMBL) stock was one of the biggest gainers from among penny stocks and had been on the radars of most investors who are interested in penny stock investment.
However, things have not been the same in recent times and it is in this sort of situation in which investors could consider taking a closer look at the HUMBL stock. Last week, there had been no news about the company at all on May 12 but even then the stock suffered from a selloff and the stock tanked by 12%.
The stock has declined sharply and given up as much as 86% since hitting its highest level in 52 weeks. However, despite the decline, it is important to point out that the HUMBL stock is still up by 70% in 2021 so far. The company is engaged in the fast growing digital payments space and is primarily involved in creating mobile apps for the same. In December last year, the company went public by way of a merger with Tesoro Enterprises. Since the merger, the stock had gone on a remarkable rally and emerged as one of the biggest gainers in the market.
The massive rally during that period is possibly the reason why it is falling now. Over the course of the past month, the stock has declined by 66% and by 83% during the past three months. Experts believe that the original rally in the stock earlier on this year had been speculative in nature and the changing trends in the market have resulted in a selloff in HUMBL. It is important to point out that in recent weeks, investors have been winding down their positions in speculative stocks and also in their investments in companies that are dependent on high growth. HUMBL fulfils both those conditions.