The emergence of the DeepSeek concept stock has captured the attention of the market, leading to remarkable rallies for certain companies involved in this innovative field. However, the experience has not been uniform across the board and signs of divergence are beginning to appear.

As of February 12, Choice data indicates a significant split among the DeepSeek concept stocks, with over 70 stocks, including Qingyun Technology, Chuangye Heima, and Xinzhi Software, enjoying gains. In contrast, 17 stocks, such as Qushui Technology, Fushi Holdings, Orient Securities, and Parallel Technology, faced declines. This divergence reflects the complex landscape in which these companies operate, amidst an overall atmosphere of market enthusiasm.

In the wake of the DeepSeek boom, numerous companies have sought to clarify their respective relationships with the DeepSeek concept. Companies like Yike De W (Ucloud) and Zhejiang Dongfang have publicly denounced any formal connection or equity ties with DeepSeek, mentioning that their investments in companies like Beijing Depth Search Technology Co., Ltd. are merely coincidental in name and that no actual investment exists.

It is essential to understand that while DeepSeek has garnered significant attention and has been a central theme in many recent stock price increases, not all companies trading under its banner are part of a cohesive narrative. Industry experts have warned that these stocks vary considerably in terms of performance and operational health, and they emphasize a cautious approach for potential investors.

The activity on February 12 illustrated this divergence starkly. Several stocks that had experienced robust growth in the preceding weeks suddenly faced declines, with Qushui Technology, Fushi Holdings, and others dropping between 1.82% and 4.44%. Conversely, a significant number of other stocks, including Qingyun Technology and Chuangye Heima, saw increases surpassing 10%. This seesaw effect raises questions about the sustainability of the excitement surrounding the DeepSeek theme.

Data shows that following the Lunar New Year, the DeepSeek index surged from 1,670 points to over 2,381 points, marking a significant more than 40% increase. Market enthusiasm, however, has not translated uniformly across all related companies. As the wave of interest began to wane, many organizations scrambled to clarify their positions, suggesting to the market a cautionary note amidst seemingly buoyant prospects.

Some companies, such as Baoland, acknowledged affiliations with DeepSeek, noting minor integrations of DeepSeek's technology into their own offerings. Baoland specifically stated that the revenue generated from this engagement is negligible, emphasizing that it does not materially affect their overall business operations. Similarly, Wanshun New Materials announced a partnership with Shiyou (Beijing) Technology Co. that involved integrating elements of DeepSeek technology, yet they too downplayed the financial implications.

Meanwhile, shareholder activity has also raised eyebrows. For instance, shareholders of Parallel Technology made significant reductions in their holdings before the stock's sharp rise. On February 11, they announced that a primary stakeholder had completed their sell-off plan, which reportedly required them to divest shares just ahead of a substantial stock price increase that followed. Notably, those shares were sold at a price considerably lower than what would soon become the stock’s peak, signaling a potentially missed opportunity for profit.

The margin for the shareholders becomes even clearer when considering that Parallel Technology's stock surged more than 240% after the reported divestment, prompting speculation about the timing of such sales by insiders. This phenomenon has been echoed among other stocks in the sector as well, such as Zhongxin Saike, whose shareholders reportedly began reducing their stakes just before the stock's ascendency.

Despite the widespread excitement, deeper examination reveals a clearer picture of financial health among the concept stocks. Statistics reveal that out of the 90 listed DeepSeek stocks, 41 reported losses in the first half of the previous year, an alarming near 46% ratio. For instance, Ucloud has shown substantial stock price appreciation yet has reported a staggering net loss of 1.65 billion yuan in the first three quarters of 2024. This contradiction points to the necessity of discerning detailed financial insights over broad thematic trends.

Similarly, Xinjue Network witnessed a stock price increase but subsequently announced a projected drop in profit for 2024. The disparity between market speculation and actual revenue generation highlights the disconnect between investor optimism and tangible economic performance. While Xinjue Network is riding the AI wave, it struggles to generate operating revenues from its innovative pursuits, demonstrating how the buzz around AI concepts does not always translate into solid financial results.

In conclusion, while the DeepSeek concept continues to inspire and propel a number of stocks into the spotlight, the reality remains that investors must navigate a market filled with volatility and varied performance. The rise and fall of these stocks illustrate the unpredictable nature of investment trends, particularly within new technological realms. Caution is advised for investors eager to capitalize on current excitement, as the disparity in corporate health and shareholder sentiments might ultimately shape the sustainability of this trend.