It's been a great day for the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. At the time of writing, the ASX 200 has added a healthy 1.21%, lifting the index to back around 7,050 points. But it's been far, far better for one new ASX 200 constituent. So let's talk about the Weebit Nano Ltd (ASX: WBT) share price.
Weebit Nano shares are on fire today. This ASX semiconductor share and new member of the ASX 200 closed at $2.84 a share yesterday. But as of the time of writing, Weebit Nano is trading at $3.04, up a whopping 7.04%.
We'll discuss this jump upwards in a moment. But first, it's important to note that yesterday, we had quite a different reaction from investors. Monday's trading saw Weebit Nano shares tumble. The company closed down a nasty 8.97% yesterday.
While the company released no fresh news yesterday, it's very possible investors panicked about Weebit Nano's location. While listed on the ASX, Weebit Nano is actually headquartered in Hod Hasharon, Israel.
Israel, as many of us would be aware, has just been invaded by the Gazan militant group Hamas. The country is currently in a state of war, with full military mobilisation currently in effect.
So it's understandable that some investors might be worried about the company's welfare amid this sharp deterioration in Israel's security.
Weebit Nano share price soars as company confirms all is well
Well, Weebit Nano has released a statement today that addresses this issue. And it might well be what is dramatically restoring investor confidence in Weebit Nano shares today. Here's some of what the statement said:
Weebit Nano Ltd… advises its Israel operations are not currently impacted by the brutal attack on the country. Its lab is operating normally in a protected location and none of Weebit's employees or immediate families have been affected by the unfolding situation. Contingency plans are in place, enabling employees to work from home if required and ensuring operational continuity.
Weebit Nano CEO Coby Hanoch added the following:
Israel has a proud tradition of 'not a single day lost' and as a nation we make it a point to not allow these tough periods to impact our work, or delay milestones.
[Weebit chair] Dadi and I are experienced in managing teams through challenging scenarios, and we remain committed to delivering against our technical and commercial roadmaps. We are making good progress with potential partners and customers, and I look forward to updating shareholders in the very near future.
It appears these statements have done wonders for the nervous investors who were selling off the Weebit Nano share price yesterday. However, the company still remains down by more than 12% over 2023 to date, as well as down more than 60% since the highs of over $9 a share that we saw back in May.
Saying that, Weebit Nano shares are still up by more than 50% over the past 12 months, so longer-term investors don't have too much to complain about there.
