Insights

Why the Weebit Nano (ASX:WBT) share price has bounced 9% today

Weebit Nano shares have clawed back the gains lost amid FY21 results last Friday.
The post Why the Weebit Nano (ASX:WBT) share price has bounced 9% today appeared first on The Motley Fool Australia. –

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.

Should you invest $1,000 in Weebit Nano right now?

Before you consider Weebit Nano, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Weebit Nano wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!