It has certainly not been one of the Weebit Nano Ltd (ASX: WBT) share price's better weeks. Last Friday, Weebit Nano shares closed at $7.54 each. But at the time of writing, this ASX semiconductor share is trading at just $5.99. Yes, so far this week, the Weebit nano share price has lost 20.58% of its value.
Monday saw Weebit Nano shares shed 1.33%. But the real sting came on Tuesday, with the company offloading a whopping 18.01%. Yesterday saw investors kick Weebit Nano while it was down too, chipping off another 6.9% to leave it at $5.68 a share.
So what on earth is going on here that has prompted this ASX share to shed a quarter of its value in just three trading days?
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What's up with the Weebit Nano share price this week?
Well, this seems to be a rather strange situation. Normally, when we see moves like those listed above (especially an 18% drop), the usual culprit is a bad earnings report or some other piece of decidedly negative news. But in Weebit Nano's case, well, that is just not the case. There haven't been any major announcements from the company in May at all so far.
The ASX itself has taken notice of this situation. Yesterday, Weebit Nano was issued with an ASX 'speeding ticket' asking the company to explain why its shares moved so dramatically. Weebit Nano had no answer, which it has communicated to the ASX.
On Tuesday, my Fool colleague James posited the following on this rather inexplicable sell-off:
This meme stock has started to catch the eye of short sellers with its sky high market capitalisation and lack of revenue. In addition, the company operates in a market which is dominated by tech giants with R&D budgets many times larger than the value of Weebit Nano.
It is certainly plausible that investors may have become a bit wary of the Weebt Nano share price. Late last month, the company released a quarterly activities report.
This revealed that the company burned through $9.66 million over the three months to 31 March 2021. This left Weebit Nano with a cash balance of $79 million. This comes after the April capital raise which netted the company approximately $60 million.
Since Weebit Nano's current market capitalisation is sitting at $1.13 billion, it isn't hard to see why some investors might have a few concerns.
But all investors should keep things in perspective. Even after this horror week, the Weebit Nano share price remains up a whopping 72% year to date, and up 124% over the past 12 months:
The company is also up more than 1,500% since August 2020. So it is not entirely unusual to see pullbacks after a run like that. Let's see what the rest of the year has in store for the Weebit Nano share price.
