Stock Alert: Futu Holdings Hits New High

Shares of Futu Holdings Limited (FUTU), an online brokerage and wealth management platform in China hit a new high of $19.00 on Tuesday, before closing at $18.95, up 12.53% or $2.11.

The stock more than doubled in the past couple of months as the online brokerage gained from the market volatility during the coronavirus pandemic.

We had alerted about this stock on May 14, 2020, when it was trading at $13.20. The stock is up nearly 45% from that range.

The company had added 40,154 paying clients in the first quarter ended March 31, 2020, 60% up from the same period last year. Futu's Hong-Kong business saw a growth rate of 90% in the first quarter.

In the first-quarter revenue had risen 107.5% year-over-year to HK$490.6 million ($63.3 million), on higher trading revenue from increased trading activities.

Net income in the quarter also had increased 240% year-over-year to HK$154.9 million (US$20.0 million).

"So for the rest of the year, in our 4Q 2019 earnings results, we gave a guidance of 90,000 net paying client addition in 2020, and so far observing from the run rate, we are pretty confident about succeeding this previous guidance that we gave out, partly because I think we are ramping up our marketing in Hong Kong local market and also we have seen very growth - very strong growth momentum from word of mouth paying client referral," commented Robin Li Xu , Senior Vice President of Futu Holdings, in its earnings conference call.

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