TradeUP Acquisition (NASDAQ:UPTD) stock is falling on Tuesday as the company’s shares give up gains seen during a recent rally.
Investors following UPTD stock will note that its shares climbed a massive 201.4% during normal trading hours on Friday. That came alongside over 4 million shares changing hands. For comparison, its daily average trading volume is about 93,000 shares.
However, TradeUP Acquisition is losing some of that ground during early morning trading on Tuesday. As of this writing, the company’s stock is down 32.6%. That comes with some 78,000 shares having been traded.
What’s Behind the UPTD Stock Movement?
There’s no recent news that explains why shares of UPTD stock are seeing so much movement. Even so, investors will keep in mind that its a special purpose acquisition company (SPAC). SPACS can sometimes be incredibly volatile as they work toward deals to take other companies public.
For example, TradeUP Acquisition is working on a SPAC merger with Estrella Biopharma. It currently has until Sept. 19, 2023, to complete this merger but also has the option to extend the negotiations to July 14, 2024, if needed.
Considering the volatility surrounding UPTD stock, it might be a bit too risky for some investors. Not only are SPAC stocks volatile before mergers, but they can be volatile afterward as well. That means investors seeking safer bets will want to steer clear of UPTD today.
InvestorPlace has all of the hottest stock market news that traders need to know about below!
We’re offering up the latest news moving stocks on Tuesday morning! A few examples include what’s going on with shares of Crown ElectroKinetics (NASDAQ:CRKN) and Helius Medical Technologies (NASDAQ:HSDT) stock, as well as the biggest pre-market stock movers this morning. All of that news is ready to go at the following links!
More Tuesday Stock Market News
- Why Is Crown ElectroKinetics (CRKN) Stock Up 15% Today?
- Why Is Helius Medical Technologies (HSDT) Stock Up 47% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
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On the date of publication, William White did not hold (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.