Shares of Dubber Corp Ltd (ASX: DUB) have surged 18.28% at the close of trading on Wednesday and are now fetching $1.10 apiece.
The gain brings Dubber’s gain over the past five days of trade to 20.8% after shares bounced off a 52-week closing low of 91 cents apiece.
What’s up with the Dubber share price?
There’s been no price-sensitive news from Dubber since the cloud-based software as a service (SaaS) provider released its quarterly activities report in April, so let’s look at the bigger picture.
Dubber shares have been sold off heavily since the beginning of the year with those still holding the stock realising a 60% loss in that time.
However, the downward trend had been in situ for some time, as the share price had tumbled from a 52-week closing high of $4.26, bringing the total drawdown now to 74% from that point.
Needless to say, Dubber’s downturn has been consistent with the moves in the wider tech sector, as the S&P/ASX All Technology index (ASX: XTX) has also crumbled 29% lower in 2022.
Dubber appears to track the tech index closely, with only a minimal divergence seen in March thus far in 2022, as seen on the chart below.
It wouldn’t come as much surprise, therefore, to see Dubber’s share price begin to lift alongside the tech index’s 8% gain since 12 May.
As the sector continues strengthening so too has Dubber’s share price. Although, that’s not to suggest the correlation is the only cause of Dubber’s spike.
Meanwhile, investors continue bidding up shares in the company on a volume of 168% that of its 4-week average.
Zooming out, and the Dubber share price has slipped 61% into the red over the last 12 months of trade.
The post Why did the Dubber share price push 18% higher today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dubber Corporation. The Motley Fool Australia has positions in and has recommended Dubber Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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