Shares of China-based cloud computing company Xunlei (NASDAQ: XNET) jumped as much as 19.6% on Tuesday. While the gain has moderated slightly, shares still closed the trading day up 9.6%.
There doesn't seem to be an immediate reason for Xunlei's stock price movement on Tuesday. Sometimes stocks move for no specific reason beyond underlying trading activity, and this could be the case with Xunlei.
It's worth noting that Xunlei stock has seen lots of volatility recently. Since it reported second-quarter results in August, shares have surged a total of 27%. Further, in the last five days alone, Xunlei stock has climbed about 22%.
While Xunlei's total revenue in its most recent quarter was up 8.9%, Xunlei CEO Lei Chen said he was particularly pleased with the company's "cloud computing and mobile advertising" revenue. These two revenue categories were up about 108% and 42% year over year. Going forward, Xunlei wants to continue emphasizing its cloud computing technologies as the "cornerstone strategy" for growing its business.
As a small company with growth rates like these in some areas of its business, Xunlei stock is bound to see some volatility from time to time.
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