Why Investors Shouldn’t Be Surprised By MicroAlgo Inc.’s (NASDAQ:MLGO) 76% Share Price Plunge
The MicroAlgo Inc. (NASDAQ:MLGO) share price has softened a substantial 76% over the previous 30 days, handing back much of the gains the stock has made lately. For any long-term shareholders, the last month ends a year to forget by locking in a 89% share price decline.
Since its price has dipped substantially, MicroAlgo’s price-to-sales (or “P/S”) ratio of 0.7x might make it look like a buy right now compared to the IT industry in the United States, where around half of the companies have P/S ratios above 2.5x and even P/S above 6x are quite common. However, the P/S might be low for a reason and it requires further investigation to determine if it’s justified.
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