The Weebit Nano Ltd (ASX: WBT) share price has soared into the green in afternoon trade on Monday.
Weebit shares are exchanging hands at $2.82 apiece, up 6% after hitting an intraday high of $2.90 apiece, a 9% jump from the market open.
Today’s moves in the Weebit share price come after it finished in the red last Friday as the computer chip developer released its FY21 earnings.
A quick refresher on Weebit Nano
Weebit Nano develops ‘next-generation’ memory technology for the semiconductor industry.
Its flagship technology uses resistive RAM (ReRAM) technology to make semiconductor elements cheaper and more efficient.
At the time of writing, Weebit Nano has a market capitalisation of $327 million.
How did the Weebit share price respond to the company’s FY21 earnings?
Weebit recorded no revenue for FY21, stating it was still in the “research and development (R&D) stage” and had not yet reached a commercial stage.
The company recorded losses before tax of $11.3 million, a massive 180% year on year increase from the loss recognised in FY20.
The widened loss was underlined by a 3,400% jump in R&D costs that came to $5.3 million, amid a 380% rise in sales and marketing expenses. This was coupled with a 23% increase in administrative expenses over the year.
This came through to a loss on earnings per share of 10.1 cents, signifying a 77% increase from the year prior.
Investors were quick to put the selling pressure on Weebit shares on Friday, selling the company’s shares in droves. As a result, the Weebit share price closed around 4% lower from the open on Friday.
Despite this downward pressure, the Weebit share price has made a recovery on Monday. However, it is still trading well below its 52-week high of $4.27 back in January.
Weebit Nano share price snapshot
The Weebit Nano share price has posted a year to date return of 19%, extending the previous 12 month’s gain of 368%.
These results have outpaced the S&P/ASX 200 index (ASX: XJO)’s climb of about 25% in the past year.
The post Why the Weebit Nano (ASX:WBT) share price has bounced 9% today appeared first on The Motley Fool Australia.
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- Weebit Nano (ASX:WBT) share price falls as losses accelerate 180%
The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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