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Why Xunlei Limited Stock Just Jumped (Another) 25%

TheMotleyFool

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Why Xunlei Limited Stock Just Jumped (Another) 25%

Chinese cloud computing provider Xunlei Limited (NASDAQ: XNET) is a puzzle. Last week, we mentioned how the stock had jumped 20% after the company reported earnings -- and how that jump made little sense, given that Xunlei's gross margins were plunging, while its operating expenses alone in the third quarter exceeded the entire value of the revenue it had brought in.

This week ... Xunlei is at it again. Shares jumped another 25% in early Tuesday trading and were still up a good 23.3% over yesterday's close as of 11:40 a.m. EST.

Xunlei stock has blockchain dreams -- and could turn into a nightmare for momentum investors. Image source: Getty Images.

Source: Fool.com