Monolithic Power Rises 0.38% Despite Tumbling to 355th in Trading Volume as High-Liquidity Stocks Outperform with 166.71% Strategy Return

Monolithic Power (MPWR) saw a 0.38% rise in its stock price on August 6, 2025, despite a 57.83% decline in trading volume to $330 million, ranking it 355th in daily liquidity among listed stocks. The drop in volume suggests reduced short-term investor activity, though the price gain indicates potential resilience in market sentiment.

A backtested strategy of purchasing the top 500 stocks by daily trading volume and holding for one day returned 166.71% from 2022 to the present, significantly outperforming the benchmark’s 29.18% return. This highlights the influence of liquidity concentration on short-term performance, particularly in volatile markets, where high-volume stocks often drive momentum through increased trading activity and demand.