The Weebit Nano Ltd (ASX: WBT) share price has been having a tough time of late.
Since trading at $7.64 on 21 June, the semiconductor company's shares have fallen by almost 30% to $5.46.
However, one positive is that things were looking far worse only a few days ago.
A recent rebound has seen the Weebit Nano share price climb 15% since the close of play on Tuesday.
Has the Weebit Nano share price turned a corner?
Whether the Weebit Nano share price has turned a corner is impossible to say.
That's because, with a billion-dollar market capitalisation and no revenue, its shares already look vastly overvalued on paper.
But that hasn't stopped plenty of investors from buying them over the last 12 months.
If the company can continue to attract buyers that are not put off by its absurd valuation, then the Weebit Nano share price could retrace its recent declines.
However, if the company does a Brainchip Holdings Ltd (ASX: BRN) and fails to deliver any tangible progress that backs up its valuation, don't be surprised if there's another swift decline. Just like what has happened to Brainchip's shares over the last 12 months, as you can see below.
One thing the company does have in its favour is its cash balance. It finished the last quarter with a cash balance of approximately $79 million.
According to its cash flow statement, this gives the company an estimated eight quarters of funding. So, this appears to rule out any need to raise capital in the near term.
It also gives Weebit Nano approximately two years to get in a position to deliver a profit. But whether it will deliver a profit that justifies its current market capitalisation, only time will tell.
