According to reports from Hong Kong's Wande News, on December 16, following a significant stock price increase of 139% last Friday, Swiss Franc Technology Company $WISeKey (WKEY.US)$ rose nearly 32% again, reaching $10.33.

WISeKey is a Swiss Franc Cybersecurity company focused on providing integrated security solutions globally. With over 20 years of experience in the digital security market, the company integrates its secure Semiconductors, Cybersecurity Software, and globally recognized Root of Trust (RoT) into leading products and services to protect users, devices, data, and Trade in the interconnected world.

From the company's stock performance perspective, since its listing on December 27, 2019, the stock price has at one point risen above $76. In terms of this year's stock price, as of December 11, it has mostly stayed below $3. However, after the trading days of December 12 and December 13, the cumulative increase in stock price has reached 226.67%.

Why did the stock price soar over 200% in the short term?

On the news front, WISeKey announced last Friday (December 13) that its subsidiary will collaborate with SpaceX, owned by Elon Musk, to launch a Satellite.

WISeKey stated that its subsidiary WISeSat.Space's Satellite is scheduled to be launched on January 14 from Vandenberg Space Force Base in California. The Satellite will carry technology to protect the communications of complex quantum computers that can solve problems beyond the capabilities of traditional computers. WISeKey founder and CEO Carlos Moreira stated that this launch represents a significant step forward for the company in its mission to ensure the security of Internet of Things communications and prepare for a post-quantum future.

It is reported that space nodes are significantly harder to attack than nodes on Earth, which will greatly enhance cybersecurity and ensure the safety of sensitive information. At the same time, by increasing space nodes, the network will become more decentralized and resilient, thereby reducing the risk of failure.

Since the beginning of the year, the stock price has been under continuous pressure.

Why has the company's stock price mostly remained below $3 until December 11 of this year? One major reason is the significant decline in the company's revenue. According to the latest data, in the first half of 2024, the company's revenue fell from $15.1 million in the same period of 2023 to $5.2 million, a decrease of 66%. The sharp drop in revenue directly impacted the company's market performance and investor confidence. WISeKey conducts semiconductor sales through its subsidiary SEALSQ Corp, but in the first half of 2024, the semiconductor market experienced the anticipated downturn, leading to a significant drop in SEALSQ Corp's sales.

In addition, market competition in the fields of cybersecurity and Internet of Things (IoT) is becoming increasingly intense. Although the company made some progress in several strategic projects in the first half of the year, the actual pace of these projects' progress was slower than expected. For example, while WISeKey's WISeSat satellite constellation project and the SEALCOIN project have broad prospects, delays in satellite launches and slow testing progress for SEALCOIN have diminished market expectations for these projects. Additionally, the slow progress of these projects has also affected investor confidence.

Editor/Somer