What happened
Shares Aurora Mobile (JG) were rising today after an analyst initiated coverage of the company with an outperform rating.
The tech stock spiked by as much as 29% today and was up by 14% as of 1:37 p.m. EDT.
So what
Oppenheimer analyst Bo Pei started coverage of the company late yesterday and put an outperform rating on the stock with a $6 price target.
Image source: Getty Images.
That was enough to send Aurora's shares skyrocketing today, but investors may want to take today's spike with a grain of salt. The company's share price has experienced some huge gains over the past year, only to see the stock pull back.
The company's share price fell earlier this year after Aurora reported fourth-quarter results that failed to impress investors. Aurora's share price is still up an impressive 66% over the past 12 months but that initial drop after its fourth-quarter results has resulted in the stock tumbling about 35% since the middle of February.
Now what
Today's large share price move, coupled with Aurora's stock price slide since February, indicates that investors are willing to push this stock up and down drastically. All of this means that investors looking to buy shares of Aurora should know that ordering this stock likely comes with a side of volatility.
