This has been a fascinating season of initial public offerings (IPOs), and it isn’t over yet. Last week brought the public debut of a company that enjoyed an excellent first week of trading. AeroClean Technologies (NASDAQ:AERC) operates within the clean air space with a focus on pathogen elimination, working to deliver safer air for everyone. In a time when the transfer of germs and bacteria is of paramount importance, this seems like a space worth exploring for tech companies. AERC stock enjoyed an impressive IPO, but this week has seen it plunge by staggering numbers, leaving investors who marveled at its rise with plenty of questions.
The Rise and Fall of AERC Stock
AeroClean announced the pricing of its IPO on Nov. 23, one day before the stock was slated to begin trading on the Nasdaq. The offering included 2,500,000 shares of common stock set at the price point of $10 each. AERC shot up by 84% within the first few hours of trading before starting to slide, only to rebound and rise by more than 90% before Wall Street’s final bell sounded that day.
AERC stock did not see much turbulence throughout the remainder of the week, displaying mostly steady growth. By the time markets closed yesterday, it had risen by more than 166% from where it had begun.
All that came to a screeching halt today as the stock began to plunge. Although AERC has been more or less stagnant since noon, it is down by 79% as of this writing. This puts it at a decline of almost 64% since its initial peak from where it stood yesterday.
What Happened?
As of now, there is no clear reason for this stock’s astounding decline after its impressive rise. It’s worth noting, though, that AeroClean was previously unknown, operating in a space that receives little media coverage. That said, clean air technology seems to be a field with ample opportunity, particularly as the omicron variant spreads and concern surrounding it grows.
As AERC stock falls, social media has been buzzing with discussion surrounding the recent trading phenomenon. Many Twitter (NYSE:TWTR) users seem to be rooting for the stock, viewing today’s declines as a significant “buy the dip” opportunity. One user has been pushing hard for a bullish play on it all afternoon.
$AERC volumes actually like 56× the normal and increasing so…..it should be heading up.
— Flying_Trader ✈✈✈ (@Nasimul1978) November 30, 2021
Others have expressed similar sentiments.
$AERC($26.38) just gotta catch the bottom for that bounce!!! #dailyfreshpicks pic.twitter.com/cK2lWfLut1
— Stock News (@ArweaveAPI) November 30, 2021
While others have discussed the possibility of a short squeeze play.
$AERC($26.10) short squeeze 🩳🍋✅ pic.twitter.com/g1pGbUOGwV
— World News (@tryingBot05) November 30, 2021
As of now, no industry experts seem to have weighed in.
What to Watch For
For all the digital attention it’s received, AERC hasn’t garnered meme-stock status yet. Until more details emerge regarding this noteworthy decline, all we can do is watch and wait, as many digital investors seem to be doing.
What we do know is that this company isn’t without potential. Far from it, in fact. AeroClean is primarily concerned with producing technology that can eliminate harmful airborne bacteria. As companies grapple with decisions to return to the office, this type of tech could prove to be of fundamental importance.
We likely won’t learn much more today, but AERC stock is certainly worth watching as its story continues to unfold. While nothing is for sure, this type of attention could lead it to meme-stock status, provided that digital communities don’t lose interest too soon.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
