The share price of software services provider to healthcare industry SCWorx (WORX) has soared 52.1% over the past month on the meme stock craze. However, given that the company is now under investigation and its business growth prospects look bleak, will the stock continue to rally? Read on. Software solutions provider SCWorx Corp. (WORX) develops advanced applications and software to manage healthcare providers' services. It also sells rapid test kits for COVID-19 and personal protective equipment. WORX’s stock has gained 52.1% over the past month, driven by the meme stock frenzy. It has become the latest target of retail traders thanks to discussions about it on social media platforms. However, its stock is currently trading 55.9% below its $5.76 all-time, indicating short-term bearishness.
WORX is currently under an investigation initiated by the former Attorney General of Louisiana for its alleged failure to provide accurate publicly available information regarding its supply agreement to sell COVID-19 test kits. In addition, WORX’s growth prospects have been adversely affected by the focus of most of its customers in the healthcare sector on meeting the nation’s healthcare needs in response to the COVID-19 pandemic. In addition to that, the company has failed to generate substantial revenue from the sale of PPE or rapid test kits in the last reported quarter.
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