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 fieldHowever, 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 gainsIn contrast, 17 stocks, such as Qushui Technology, Fushi Holdings, Orient Securities, and Parallel Technology, faced declinesThis 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 conceptCompanies 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 narrativeIndustry 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 starklySeveral 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

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Market enthusiasm, however, has not translated uniformly across all related companiesAs 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 offeringsBaoland specifically stated that the revenue generated from this engagement is negligible, emphasizing that it does not materially affect their overall business operationsSimilarly, 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 eyebrowsFor instance, shareholders of Parallel Technology made significant reductions in their holdings before the stock's sharp riseOn 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 followedNotably, 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 insidersThis 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 stocksStatistics 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

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