Prestige Wealth (PWM) stock has gone parabolic but faces risks

Core Viewpoint - Prestige Wealth (NASDAQ: PWM) experienced a significant stock price surge due to a strong short squeeze, increasing by over 43% in regular trading and over 24% in extended hours, raising its market cap to over $15 million [1]. Group 1: Stock Performance - The stock price of Prestige Wealth has collapsed by more than 94% since July 2023, when it was previously recommended to avoid due to its poor performance compared to other Chinese companies [1]. - On a recent trading day, PWM stock's total volume reached over 1.8 million, significantly higher than its recent average of 104,000, with volumes of 164,000 and 34,200 on the preceding days [2]. Group 2: Financial Results - The company's net revenue for the first half of the year was reported at $565,000, a decline from $1.78 million in the same period the previous year, with net income dropping to $238,000 due to major headwinds [4]. Group 3: Market Dynamics - The surge in PWM stock price is attributed to its popularity among meme investors and day traders, making it easier to manipulate as a penny stock [4]. - Similar trends have been observed with other small Chinese stocks and cryptocurrencies, where traders have engaged in pump and dump activities [4].