Multiple reasons. There is an adage about "buy the rumor, sell the news" which reflects this common scenario. Many investors who invest based on headlines, excitement, and fear of missing out, and without performing due diligence to understand the a company's fundamental prospects, can easily panic. If overly enthusiastic investors buy heavily on margin (credit) and then price drops too much, their brokerage can force them to sell regardless of the price, which drives the price down more. Investment institutions such as hedge funds, mutual funds, investment banks, and others can and do take advantage of these "retail investors" by manipulating them.
E.g. If a hedge fund sees a biostock company present great news and wants to invest, they may try to get shares much cheaper by various means of driving the price down. They can see level 3 data which includes the price points and volumes of shares available at lower prices through stop-loss orders, which they want to acquire. As the price goes down, stop-loss orders get executed at the market price, driving the price down even further.
In one notable case, AVXL was subjected to a large "Short & Distort" attack. That's where there is collusion with firms shorting to maximum capacity (borrowing and selling all the shares available to borrow) followed by a pre-planned disinformation campaign in the media and on social media. The big shorts wouldn't risk everything like that without having their puppets ready to guarantee the media hits.
All this and more is why I buy without margin, hold, and ignore the daily, weekly, monthly, and in this case, yearly price fluctuations. I get excited to see the price go up, and disappointed to see it go down, but it doesn't affect my investment in the long run. I am convinced Blarcamesine is going to get approved. It's only a question of when, and I will wait regardless of how long that takes.
Bullish
