AI-powered CXApp skyrockets 1,480% in explosive three-day rally
- Despite the recent significant gains in its stock price, CXApp Inc. remains a relatively small company with a market capitalization of approximately $200 million.
CXApp Inc., a company that recently went public through a merger with KINS Technology Group Inc. via a Special Purpose Acquisition Company (SPAC), experienced a significant surge in its stock price on Friday, jumping by 94%. This surge added to its impressive rally over the past three days, during which its stock price has increased by a staggering 941%.
The artificial intelligence-powered enterprise software company has jumped from a Tuesday close of $1.33 to end Friday’s session at $13.85 without having released any new updates with the US Securities and Exchange Commission in the period. The stock is the latest to ride the AI wave that’s boosted multiple companies this year. It was the most-mentioned stock over the past day in Stocktwits, according to data compiled by Bloomberg.
Despite the recent significant gains in its stock price, CXApp Inc. remains a relatively small company with a market capitalization of approximately $200 million, as per data from Bloomberg. The company, which is based in Palo Alto, California, began trading on March 15th.
AI-hungry investors have propelled Nvidia Corp., which makes the chips needed for complex AI computing tasks, into the best-performing stock among mega-caps this year.
Relatively obscure firms with AI in their names have also skyrocketed. Guardforce AI Co. has soared more than 400%, BigBear.ai Holdings Inc. has surged more than 300%, while C3.ai Inc. has nearly doubled this year.
CXApp merges the AI mania with another volatile Wall Street phenomenon: special-purpose acquisition companies or blank check companies.
Blank checks, which raise money with the goal of taking private companies public, are supposed to offer safe returns for early investors who buy in at the IPO price and bank the subsequent gains.
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First Published:15 Apr 2023, 05:38 AM IST
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