Brainchip Holdings Ltd (ASX: BRN) shares are crashing back down to earth on Thursday following a surprising gain yesterday.
In morning trade, the semiconductor company's shares are down 14% to 21.5 cents.
What happened?
Investors have been rushing to the exits this morning after the company responded to an ASX Price Query request from the Australian stock exchange operator.
The semiconductor company was at a loss to explain the strong rise on Wednesday. It was asked:
Is BRN aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?
It's response: "No."
The company also confirmed that there wasn't "any other explanation that BRN may have for the recent trading in its securities."
What's going on with Brainchip shares?
It's unclear what drove Brainchip shares higher on Wednesday. However, it is worth noting that it is a meme stock with a sizeable community behind it on social media and message boards.
There's plenty of speculative dot-joining going on in these echo chambers, and it's conceivable that one rumour got everyone excited.
With management revealing that there's nothing new to report, it seems that the excitement has worn off, and these investors may now be going back to the dot-joining drawing board.
Brainchip shares are down approximately 66% over the last 12 months. The company recently reported quarterly cash receipts of US$27,000 despite spending US$4 million on operating costs.
