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Safe and Green Development (NASDAQ:SGD) stock is up more than 30% today on news that it recently signed a non-binding Letter of Intent () with Majestic World Holdings. The deal would allow Safe and Green to invest in MWH in exchange for access to Majestic World’s XENE software platform, an artificial intelligence ( ) based decentralized real estate market.
What does this promising new potential partnership mean for the real estate development company?
Well, according to the terms of the deal, the collaboration could be considered a step forward for both AI integration and real estate. Indeed, the XENE platform intends to be an “all-in-one” real estate hub bringing together “banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers into a seamlessly integrated and structured AI-driven environment.” When the project is fully complete, MWH believes XENE will save both time and money in nearly every aspect of the real estate business.
David Villarreal, President and CEO of Safe and Green Development, said the following about the deal:
“We believe that once established, the seal of this strategic alliance will signify a crucial turning point for both organizations. We further believe this strategic partnership will pave the way for an explosive era of growth, innovation, and the expansion of opportunities within each of our companies, our stakeholders, and all who engage with our businesses.”
Is SGD Stock at a ‘Turning Point’? Or Is It the Latest Meme Sensation?
While today’s news is certainly promising, it has raised some eyebrows. Some are concerned that this may just be another meme stock bull rally with little to justify the climb. Reasonably so, SGD stock went public just months ago, with little anticipation. Indeed, the stock is down about 42% year-to-date (YTD) — not exactly a promising sign for any newly listed security.
Additionally, today isn’t the first day of SGD stock’s surge. In the past five days, SGD has jumped roughly 800% on little pertinent news.
It’s hard not to draw comparisons to the likes of other famous meme stock darlings, like GameStop (NYSE:GME) and Bed Bath and Beyond, each of which climbed hundreds of percent in days despite little-to-no promising news. With that in mind, SGD is likely just another meme stock enjoying it’s moment in the sun. Whether the company capitalizes on its newfound relevance remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.