The American Rebel Holdings (NASDAQ: AREB) stock has come under the limelight lately, with market participants anticipating high growth in the short-term period. As trading reached the pre-market phase, total growth throughout the previous day amounted to a total of 52.63%. What has been of particular note is the volume of trade during this period, which indicates substantial interest in the market, described as being the essential driver behind the growth being experienced.

Initial Public Offering

The company, a firm specializing in the design and marketing of self-defense products, had also made the news earlier last month, after the announcement of its initial public offering.  The $10.5 million equity funding had provided the company a significant boost, as well as the confidence of investors, after being listed on the NASDAQ exchange. The public offering had further given the company’s stock a temporary jump in stock price, allowing traders to capture immediate gain during the time. Since then, company stock value has been on a steady decline, immediately following the short-term gains it had experienced and had been unable to sustain.

External Triggers

The sudden interest in the company’s stock, along with traders investing in substantial volumes, correlates with the passing of a senate bill in Georgia, permitting citizens to carry concealed firearms, without the requirement of a license. American Rebel happens to offer concealed carry firearms and related products. It is likely that political discourse on this topic, following the passing of the Georgia senate bill, has led to market participants seeing an increase in earning potential for firms such as American Rebel. This may have potentially triggered the initial interest towards the AREB stock, which was then enhanced by traders anticipating growth potential, as a domino effect. It is likely that this is a potential explanation for the high volume of trade the stock had undergone.

Conclusions

This external event seems to be the optimal trigger that launches the company stock into the limelight, bringing attention to the business as a whole, leading to a potential swing in the market. The price jump from $1.29 to $1.92 is an indication of this possible swing, with buyers optimistically expecting this growth to further continue onward. The question as to whether this growth will sustain, or plummet as it did subsequent to its earlier IPO, is yet to be seen.