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FUTU’s Stock Rise: What’s Driving the Surge?

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Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
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Futu Holdings Limited is experiencing a surge, with stocks trading up by 9.61 percent on Friday, driven by positive market sentiment generated by news of its strategic expansion in international markets.

Exciting Developments Ahead

  • Moomoo, Futu’s popular trading platform, launches an innovative US Options Paper Trading Challenge. Partnered with Nasdaq, it promises learning and fun through a simulation with $200,000 in virtual cash and prizes worth $15,000.

Candlestick Chart

Live Update At 11:38:52 EST: On Friday, January 17, 2025 Futu Holdings Limited stock [NASDAQ: FUTU] is trending up by 9.61%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of Futu’s Earnings and Market Activity

In the world of trading, prudent decision-making is crucial to maintaining fiscal health, especially during volatile markets. Many traders often face the dilemma of cutting their losses or holding on in hopes of a rebound. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This principle emphasizes the importance of preserving capital, even if it means missing out on potential gains temporarily. It serves as a valuable reminder that staying disciplined and managing risk appropriately can lead to long-term success and sustainability in a trader’s career.

Futu Holdings Limited has experienced notable market activity recently. The stock experienced a strong opening on Jan 17, 2025 with an impressive price increase, concluding the day 8.66% higher at $88.13. This uptick demonstrates the market’s positive reaction to company developments.

A closer look at Futu’s Q4 earnings reveals a mixed yet encouraging picture. The firm’s total revenue stands at $9.11B, though the 3-year and 5-year trends show declines, both at -100%—indicative of past challenges that may have been overcome this quarter. Improved profitability metrics highlight a pre-tax profit margin of 48.3%, while a 20.47 PE ratio suggests favorable investor sentiment.

More Breaking News

Strong financial strength metrics underscore this optimism further. Despite a leverage ratio of 4, the company’s prudent management of payables and accrued expenses appears healthy. A return on equity of 7.39% shows effective utilization of shareholder funds.

Intrinsic Value and Market Reaction

Delving into the key ratios, Futu displays a price-to-book ratio of 3.51 and a price-to-sales ratio of 9.46. Investors note these as indicators of the stock’s current valuation and future promise. Following recent compelling news from Moomoo’s option trading competitions, participants are seemingly boosting the stock as engagement likely soars.

In the backdrop, the balance sheet points towards robust cash positions, with cash and equivalents at $49.31B, contrasted by moderate long-term leverage, which signals the capacity for continued asset investment or debt management.

Conference Buzz and Future Roadmap

The trading challenge hosted by Moomoo could catalyze Futu’s further market potential. By offering a hands-on trading experience with theoretical capital, coupled with cash rewards, consumer interest in trading and financial literacy might surge. With $15,000 up for grabs, the allure to both novice and seasoned traders could create ongoing waves of market-driven excitement around Futu’s stock.

Moreover, the collaboration with Nasdaq brings a level of prestige, aiming to boost engagement across diverse trading communities. The resulting increase in active users would likely present opportunities for revenue growth, positioning the firm strategically for the coming fiscal periods.

Conclusion and Final Thoughts

The stock market’s intricate dance often swirls unpredictably, yet in Futu’s current narrative, elements align harmoniously. As millionaire penny stock trader and teacher Tim Sykes says, “Preparation plus patience leads to big profits.” With strategic ventures underway and robust financials observed, the stock shows promise of further ascension. As always, market moods, economic variables, and unforeseen news will play their parts—but for now, FUTU appears poised to continue its intriguing journey on solid footing.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Our traders will never trade any stock until they see a setup they like. Their strategy is to capture short-term momentum while avoiding undue risk exposure to a stock’s long-term volatility. This method is especially useful when trading penny stocks or other high-risk equities, where rapid gains can be made by understanding stock patterns, manipulation, and media hype. Whether you are an active day trader looking for key indicators on a stock’s next move, or an investor doing due diligence before entering a position, Timothy Sykes News is designed to help you make informed trading decisions.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”