Why Is Nano-Cap Stock Sound Group Trending Today?

Sound Group was the top trending ticker on Stocktwits early Friday, after the nano-cap stock more than tripled in the previous trading session following the company's earnings report and the announcement of a special dividend.

Singapore-headquartered Sound Group on Thursday announced a special dividend of $0.005 per ordinary share and $1 per American Depositary Share (ADS). It will be paid on Sept. 30. to shareholders of record as of Sept. 15.

The company has never declared a dividend before, according to Koyfin data. 

On Stocktwits, the announcement and a reported swing to profitability in the last quarter sparked significant interest among retail watchers. Retail sentiment shifted to 'extremely bullish' as of early Friday, from 'neutral' the previous day.

Some users found the earnings to be a shock, while others discussed the impact of the dividend on the share supply, given the stock's low float.

Sound Group, formerly known as Lizhi based on its flagship app, is a tech developer and operator of audio platforms for entertainment, podcasting, and social networking. The company's stock was listed on the Nasdaq in 2020 and was valued at $14.4 million as of the last close.

On Thursday, the company reported that its revenue grew 47% to 1.36 billion yuan ($189.5 million) in the six months ended June, while net profit nearly doubled to 67.6 million yuan.

As of last close, Sound Group's U.S. shares, SOGP, are up over 480% year-to-date.

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