Shares of Chinese internet company Xunlei Ltd. (NASDAQ: XNET) continued to crumble on Tuesday. The stock had gained about 475% since Oct. 12, when the company announced a cryptocurrency project. Those gains have been unraveling as the euphoria fades. The stock was down about 15.4% at market close on Tuesday.
Continue Reading Below
Xunlei announced its "Wanke coin mining" project on Oct. 12. The stock rocketed higher on pure speculation. That rally ended in late November.
On Nov. 29 Xunlei issued a statement regarding its cryptocurrency project in an attempt to quell reckless speculation:
Since peaking on Nov. 24, shares of Xunlei are down about 45%.
Shares of Xunlei are still up more than 200% since the beginning of October, prior to the cryptocurrency announcement. That gain was driven by wild speculation. Cryptocurrency mania may keep the stock afloat for a while, but those speculating on Xunlei shares should be prepared for more declines.
10 stocks we like better than XunleiWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Xunlei wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of December 4, 2017