NEW YORK (TheStreet) -- Shares of InterCloud Systems (ICLD) were plunging, down 17.81% to $3.37 on heavy trading volume mid-morning Tuesday, giving back some of yesterday's gains following the launch of its new platform.
On Monday, shares rallied to close at $4.10, a more than 53% gain on the day after the company announced its new NFVGrid, a Network Functions Virtualization Orchestration platform.
The platform uses open APIs to ensure its interoperability with different OSS/BSS platforms, cloud management systems, SDN controllers, and virtualized network function managers.
InterCloud CEO Mark Munro said, "Infonetics forecasts the carrier SDN and NFV market to reach $11 Billion by 2018. We have positioned InterCloud to be a competitive force in the emerging growth of Next-Generation IT and telecom networks."
About 4.42 million shares of InterCloud were traded by 10:23 a.m. Tuesday, compared to the company's average trading volume of about 1.98 million shares a day.
Red Bank, NJ-based InterCloud Systems, formerly Genesis Group, is a provider of information technology and next-generation network solutions to the telecommunications service provider and corporate enterprise markets through cloud platforms and professional services.
Separately, TheStreet Ratings team rates INTERCLOUD SYSTEMS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTERCLOUD SYSTEMS INC (ICLD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk."