Is SGOCO Group (NASDAQ:SGOC) Stock Due For Pull Back After The Monster Rally?

Yesterday, the stock emerged as one of the major gainers due to the actions of investors from Reddit and clocked gains of as much as 196% in the morning.

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In recent times, stocks that are targeted by retail investors from Reddit almost always garner a lot of attention and that is primarily due to the considerable short-term gains that are generated. One of the stocks to have become the target of those investors recently is the SGOCO Group (NASDAQ:SGOC) stock.

Yesterday, the stock emerged as one of the major gainers due to the actions of investors from Reddit and clocked gains of as much as 196% in the morning. Retail investors got into the stock in a big way yesterday and it is likely the Hong Kong-based company is going to come into considerable focus among many investors this morning. The rally in the stock had actually started last Friday when the stock soared by 500% despite there being no news.

The rally on Friday brought the SGOCO stock onto the radars of retail investors who are active on platforms like Twitter, Reddit, Discord, and StockTwits and now have the power of moving stock prices considerably. Earlier on in the year, these traders had been responsible for the massive gains generated by such unheralded and beaten-down stocks as AMC Entertainment Holdings and GameStop among others.

It should be noted that at this point it is unclear why the SGOCO stock surged last Friday but it is quite apparent that demand from retail investors has been the main driver of the stock. It is going to be interesting to see if the stock can continue to add to its gains in the coming days.