Aurora Acquisition (NASDAQ: AURC) stock was up 223% yesterday. It's also - variably - down 17% this morning. Which is about 25% of yesterday's rise gone already. The excitement is, of course that, AURC is a SPAC. Which has a value of the cash inside it and that's it. Except, the value of the cash plus hopes of whatever, or whoever, the SPAC might merge with. So, and even small change in that hope can lead to wild swings in price.
As it happens Aurora had been bumbling along at $10 and change ($10 being the cash value) and there were entire days that went by without there being even the one trade. Then came that change in hope to deliver the excitement: “Aurora Acquisition shares more than tripled to $36.01 Tuesday after a Monday update from the blank-check company about its merger with Better, a mortgage lender backed by SoftBank Group. Aurora said in a securities filing that it scheduled an Aug. 11 stockholder vote about the deal. Aurora and Better also filed the required forms on July 19 under the Hart-Scott-Rodino Act.”
So, something might be happening and something might be happening soon. Or at least something that might change the hope value in the stock might happen soon. As ever, future events get dragged back in time to affect the current price.
Aurora Acquisition stock price from NASDAQ
Other than that change - that the deal appears closer - there's very little worth saying about Aurora. It's a SPAC, it's a cash pile with a listing, that's all it is. Any future value depends upon who, if anyone, it merges with.
We have to admit to not being hugely excited by anything to do with Softbank, they seem rather to have missed their mark in recent years. But a mortgage bank would be more interesting than merely a cash pile, that has to be said as well.
As to this near future, we'd expect some fading - that 223% did seem overdone to us. But expect more volatility around that August 11 decision day as well. But do grasp the real basics here. This is all purely speculation upon the hopes and dreams of that merger. Which as yet is still not certain to happen.