Why sonn is in negative today after trading higher for nearly 200%

Sonnet BioTherapeutics Holdings, Inc. (SONN) experienced a pre-market increase of 138% on November 6, 2024, which is a significant surge in comparison to its regular session percentage change of -11.4% on the same day. The stock's performance can be analyzed from the following perspectives:

1. Recent Performance: SONN has been volatile, with a significant pre-market increase followed by a decline in the regular session. This fluctuation could be due to various factors, including market reactions to the company's recent news and events.
2. Underwritten Public Offering: The company recently announced the pricing of an underwritten public offering, which could have led to a dilution of shares and a negative reaction from investors. Such events can cause short-term volatility as the market adjusts to the new supply of shares.
3. Patent Issuance: Sonnet BioTherapeutics Holdings, Inc. (SONN) has announced the issuance of a U.S. patent covering an IL-18 variant into two novel immunotherapeutic drug candidates. This development could be a positive long-term catalyst for the company, but it may not have immediate positive effects on the stock price.
4. Market Dynamics: The overall market trend, including the performance of the Nasdaq Composite and the Dow Jones Industrial Average, can influence individual stock movements. On November 6, 2024, U.S. stocks traded higher, which could have positively influenced SONN's pre-market performance. However, this positive momentum did not carry over into the regular session, indicating that other factors specific to SONN may have dominated.
5. Historical Performance Concerns: There is a historical context where stocks with certain characteristics, such as SONN, have been associated with poor future stock performance. This could be due to factors like negative EPS revisions and inferior profitability compared to other Health Care stocks.

In conclusion, the decline in SONN's stock price on November 6, 2024, can be attributed to a combination of factors, including the company's recent capital raise, market dynamics, and historical performance indicators. The pre-market increase, on the other hand, could be attributed to positive news related to the patent issuance, which may have led to a surge in the stock price before the market opened.