Secoo Holding Stock Is Soaring Alongside AI Names: What's Going On?

Secoo Holding Ltd SECO shares are surging higher Monday after the company announced it will explore the use of Microsoft Corp MSFT-backed ChatGPT and other AI technologies.

What To Know: Secoo said it has been continuously exploring the application of intelligent content generation technology for luxury-related businesses with a service frequency of over 100 million and a consultation resolution rate of more than 90%.

Subsequently, Secoo announced it will also conduct research on AIGC and ChatGPT-related technologies. Secoo believes these technologies can enhance the degree of relevant content such as luxury-related text and video content and product selling points descriptions. Furthermore, the company expects said technologies to significantly improve conversion rates.

"In the future, AIGC will lead a new revolution in the digital content field and become the content production infrastructure of luxury e-commerce," the company said.

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Secoo Holding operates an online-offline boutique lifestyle platform in Asia. Monday's move appears to be an overreaction, but it's in line with a trend that has started to emerge in the AI space. 

Several other AI-related names are moving higher and have seen increased investor attention since Microsoft doubled down on its investment in Open AI, the company behind ChatGPT. 

C3.Ai Inc AI, BigBear.Ai Holdings In BBAI and SoundHound AI Inc SOUN are among the biggest movers on Monday. At last check, C3.ai was up approximately 10%, BigBear.ai was up more than 15% and SoundHound was up nearly 40%. The trio appears to be benefiting from having "AI" in their respective names. 

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SECO Price Action: Secoo has a 52-week high of $6.90 and a 52-week low of $1.50.

The stock was up 163.7% at $4.43 at the time of writing, according to Benzinga Pro.

Photo: Gerd Altmann from Pixabay.