GTT Communications Inc. (GTT) shares were rising in the premarket trading hours; at last check, GTT stock jumped up by 17.74% to $2.92. GTT stock previously closed the session gaining 13.24% at $2.48. The stock volume traded 3.78 million shares. In the past week, GTT shares have moved up by 0.81%, however, they have shed in the past one year by -68.77% due to non-payment of interests.In the past three and six months, the stock has gained 44.19% and then shed -29.14% respectively.
What you need to know about GTT communications
GTT Communications Inc. is a Telecom service provider company that specifically focuses on the provision of cloud networking, wide area networks and network-based softwares. The company’s clienteles are multinational enterprises, carriers and public authority entities. GTT stock operates in the market of the United States, Europe, internationally and is headquartered in the Mclean, Virgina. The company was founded in 2005 and was previously known as Global Telecom & Technology Inc. until January 2014. GTT Communications provides network intensive and broad range of product offerings which include virtual private LAN service, Multiprotocol label switching with broadband and wireless internet services.
Other than network services, GTT Communications also provides security and equipment management services, cloud services, transport services (Ethernet Services and video transport) and infrastructure services. The infrastructure services include transportation of volume dense data between data centers, locations for the enterprise offices and media hubs.
The company provides its services through a marketing and direct sales force as well as utilizes third-party sales channels.
GTT stock gained volatility in stock price in-exchange for delay in zombie activity thanks to Redditors
WallStreetBets and meme-based stocks’ trade actions now have unpredictable reactions in the market beyond the usual volatility. This was obvious previously with the shorted companies that were rescued by the “army of Redditors” that came to the rescue of these stocks with their retail trading diaspora. However, that was only the beginning since now companies that are on the verge or have declared bankruptcies have become zombies but still suddenly show spike in the share price of their stock. This is due to the bidding up of shares done by the Redditors.
A report and statistics compiled by Bloomberg showcase that the Russell 3000 Index, the US broad benchmark for stocks has 726 companies registered that have been earning enough to run operations but not enough to pay up their interest payments and debt (“Zombies”). However, these zombies are now climbing the charts at an average 30% in 2021.
Some analysts and experts of trading view this phenomena as only the beginning and already credit analysts are trying to get used to the fact that when looking into the balance sheet for debt of certain issuers it is becoming a norm to account for the inflation in the account equity valuations caused by Reddit-drive trade. Companies like Gamecorps Inc. and AMC have been able to monetize on these valuations.
GTT was one of the companies that was considering a bankruptcy plan which would devastate the shareholders through the Chapter 11. However the company’s stock is up 13% today in the market. On 3rd June, after sinking to $1, GTT stock jumped up to $4.75 on intraday high because its trading cues attracted the Redditor’s attention; small market cap and shorted interests.
