Why Shares of SOS Limited Jumped 21.7% on Friday

What occurred 

Shares of cryptocurrency inventory SOS Limited (NYSE:SOS) jumped as a lot as 21.7% in buying and selling early on Friday after saying preliminary six-month outcomes for 2021. Shares fell from their excessive of the day however have been nonetheless up 10.1% at 2:15 p.m. EDT. 

So what

Management stated that income jumped greater than 17 occasions within the first six months of the 12 months to $184.5 million, and gross revenue rose from $0.08 million to $17.2 million. However, working loss was nonetheless $20.4 million as inventory and authorized bills weighed on outcomes.

Image supply: Getty Images.

Crypto mining was the clear progress driver for SOS Limited with 132.1 Bitcoins (CRYPTO:BTC) and 1,853.1 Ethereum (CRYPTO:ETH) mined within the first six months of the 12 months. Mining charges greater than doubled within the second quarter of 2021, versus the primary quarter. 

Now what

The large soar in income is what traders obtained enthusiastic about in the present day. What we’re not seeing but is profitability, which is what traders ought to search for within the second half of the 12 months. For now, there’s lots of income to be made within the sizzling market, however to be actually sustainable, traders will wish to see the underside line enhance. 

This article represents the opinion of the author, who might disagree with the “official” advice place of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our personal — helps us all assume critically about investing and make selections that assist us develop into smarter, happier, and richer.

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About the Author: Daniel