Why Micro-cap WTO Stock's Retail Following Surged By Nearly 45% This Week

Chinese mobile device and wearable medical tech manufacturer UTime Ltd (WTO) has experienced a tumultuous week, with its stock price plummeting by 96%.

Alongside this decline, the company has attracted significant attention from retail investors, with its follower count on Stocktwits surging by nearly 45%.

UTime's recent announcement of a non-disclosure agreement with Bowen Therapeutics to acquire a laboratory at UMASS Medical School has sparked interest.

The company plans to focus on developing a vaccine for the mpox virus, leveraging Bowen's research and expertise.

This strategic move comes as a new strain of the mpox virus has become a global concern, prompting the World Health Organization (WHO) to declare it a public health emergency.

With rising cases — even outside Africa — and increased demand for diagnostic tests and vaccines, several major players, including Labcorp (LH), Roche, and Emergent BioSolutions (EBS), are expanding their efforts in this area.

UTime's abrupt shift into the vaccine sector has raised eyebrows among investors, leading to a dramatic 93% decline in the stock price on Wednesday alone.

However, the company has reassured investors that its operations remain normal and that it is conducting an internal investigation to address any concerns regarding the stock's volatility.

The stock on Friday traded with a volume of 312.86 million, significantly above the daily average of 210,571 shares. Still, negative comments from retail investors have been aplenty, reflecting ongoing skepticism about UTime’s new direction.

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