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Aurora Acquisition (NASDAQ:AURC) stock is screaming higher today, up 160% as we speak. As a result, AURC stock is clearly trending on Friday. However, that’s nothing new to anyone who’s been following this name.
Shares have quintupled so far this week, rallying about 425% as we near the weekend.
A bulk of those gains came on Tuesday, when shares more than tripled. The stock rallied 223% that day before pulling back, then exploded higher again on Friday.
InvestorPlace’s Shrey Dua broke down the “why” to Tuesday’s rally, explaining that the stock’s surge came on “the perception of progress regarding its merger with Better.com, a SoftBank Group (OTCMKTS:SFTBY) backed mortgage lender.”
Dua added that, “Aurora announced via a securities filing that it had set the merger vote for Aug. 11. This came alongside an update that both Aurora and Better.com had filed necessary forms on July 19 as per the Hart-Scott-Rodino Act.”
That helps explain the recent rally, but what should investors look for going forward with AURC stock?
AURC Stock Bulls Need to Watch August 11
With the massive rally, the stock now commands a market capitalization of just under $500 million.
Despite the huge upside move though, investors need to keep an eye on the stock. Its merger agreement is set for Aug. 11. Leading up to that event — and the event itself — there will be the potential of more volatility.
Keep in mind, after the stock surged on Tuesday, AURC stock suffered a two-day 54% correction. Of course, those losses are well in the rearview mirror at this point, but the volatility is something worth keeping an eye on.
Separately, it was noted that, “About two years after Better.com announced its plans to go public via special purpose acquisition company (SPAC) Aurora Acquisition Corp., the fate of Better.com’s journey to IPO will be decided next month.”
Further, “Amid the unfavorable market conditions — sharp interest rate increases and declining origination production — massive layoffs and bad press against Better.com, the deadline to complete the merger deal was extended three separate times.”
That’s not the best look and it likely had many doubting whether this deal would ever go through. Now though, “The vote will take place on August 11 ahead of the extended deadline to complete the merger deal on September 30.”
That vote is the next step of the company’s journey, so AURC stock observers must keep this date circled on their calendars.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.