Biotech stocks usually move based on clinical trials. Most of the time without news they either decline or remain stagnant. There is a clear uncertainty in Day One stock which is soaring 109% dramatically to stay flat or plunge.
Currently, the company is conducting clinical trials of FIREFLY-1, an antitumor therapeutic that is planned to deliver its final results in Q1 2023. Until that time the stock can only grow with a help of clinical trials. It can’t impress the masses with its earnings. Normally such stocks should trade under $5.
In DAWN’s scenario, we may witness its sharp fall this year. The only strategy for the stock could be a long-term shorting.