Please ensure Javascript is enabled for purposes of website accessibility

Is This Why Aurora Mobile Stock Is Surging Today?

By John Rosevear - Feb 9, 2021 at 2:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Were you looking for a self-driving company? This isn't it.

What happened

Shares of Chinese mobile advertising specialist Aurora Mobile (JG -2.17%) were trading sharply higher on Tuesday. It wasn't immediately clear why, though investor confusion in the wake of a deal announced by another company that shares the Aurora name may have been a factor.  

As of 2 p.m. EST, Aurora Mobile's stock price was up about 11.5% from Monday's closing price.

So what

Aurora Mobile did have big news last week, when it announced a partnership with Kuaishou Technology, a fast-growing rival to giant TikTok. That might still be driving the stock higher -- but I suspect that at least some of the buying on Tuesday was a case of mistaken identity.

Specifically, I think it's possible that some investors (or traders, or bots, or all of the above) are confusing Aurora Mobile with Aurora Innovation, a not-yet-public Silicon Valley start-up that has been developing autonomous-vehicle technology. 

That Aurora (Innovation, not Mobile) had some big news on Tuesday: It revealed that it signed a multiyear partnership with Toyota Motor and auto-industry supplier Denso to develop and mass-produce self-driving minivans for ride-hailing services including Uber Technologies.

A white Toyota minivan with an Aurora logo on its door drives down a street.

This might be the Aurora you're looking for, but if so it's not Aurora Mobile. Image source: Aurora Innovation.

If Aurora Innovation were a public company, I'm quite sure that its stock would be soaring on that news today. I might even suggest that you buy some. Alas, it isn't, and you can't.

Now what

If you're an auto investor who is considering Aurora Mobile's stock because of the Toyota news, please don't click that "buy" button! There may well be good reasons to be bullish on Aurora Mobile, but the deal that Aurora Innovation announced with Toyota today isn't one of them. Trade carefully.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Aurora Mobile Limited Stock Quote
Aurora Mobile Limited
JG
$1.00 (-2.17%) $0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.