Atossa Therapeutics (NASDAQ:ATOS) Stock Continues to Fall: Good Time to Add?
3:45 pm Monday, August 02nd, 2021
The meme stock phenomenon that has been unleashed on the markets this year is not going to be forgotten any time soon and one of the many stocks to have benefitted from is that of Atossa Therapeutics (NASDAQ:ATOS). When the meme stock mania fuelled by retail investors from Reddit first emerged earlier on in the year, Atossa was one of the stocks that enjoyed a remarkable rally.
However, the trend soon cooled down and the stock went down with it. When the meme stock rally returned, the Atossa stock was again in the thick of it due to the short interest in it and it went on a strong rally as well. Since the end of June, the stock has tumbled quickly and went from a high of $9.80 a share to $3.90 a share at the time of writing.
While the end of the Reddit fuelled rally may have resulted in the selloff, it should be noted that unlike many of the other meme stocks, Atossa actually has a viable business.
The company has plenty of candidates in its product pipeline that could change the fortunes of Atossa and its stock if they turn out to be successful. Those factors may have all been priced into the stock at this point. Moreover, the inclusion of the stock in the Russell 3000 and Russell 2000 indexes had also fuelled a strong rally. While the pipeline is promising, it may not bear fruits quickly and hence, remains a risk. Hence, it might be a good idea for investors to wait for further correction before considering the Atossa stock.
