This morning the Farmmi Inc (NASDAQ:FAMI) stock is in recovery mode and has already clocked gains of 22%. The last week had been quite tough for the stock, which had crashed by 60% in a single day.
There has been no news with regards to the company but the selloff in the stock last week might have been part of a broader market trend of a selloff in China-based stocks. There was a selloff in Chinese stocks almost across the market from the small caps to the large caps.
It is believed the continued tension between Chinese President Xi Jinping and United States President Joe Biden is the reason behind the latest selloff.
However, it should be noted that such a steep decline might indicate something else about the company as well. Farmmi is involved in the mushroom farming space among others and hence, there is a fair degree of risk considering its export dependant business model.
Writing for business and finance publishers has become his passion over the last decades after he completed a master’s degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.