AUR Stock: The Apple Car Rumors Driving Aurora Innovation Higher Today

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Today, Aurora Innovation (NASDAQ:AUR) is a big mover and shaker in the market. Currently, AUR stock is up well more than 30% at the time of writing. This move comes amid an impressive shift in sentiment within the autonomous driving segment of late.

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Aurora Innovation is a self-driving startup, founded by the former Google self-driving project head. The company’s focus on autonomous driving as the future of transportation is something growth investors can get behind.

This can certainly be seen in the price action of AUR stock in recent days. Aurora went public on Nov. 4 via a reverse special purpose acquisition company (SPAC) merger, and since then, shareholders have seen nearly 50% returns. Not bad for being patient for a couple weeks.

However, there’s a big catalyst driving this sentiment shift over the past two days. Let’s dive into what investors are watching with this autonomous driving play.

AUR Stock Surges on Apple Car Rumors

High-profile reports, which began surfacing yesterday, suggest Apple (NASDAQ:AAPL) could be looking to accelerate the development of its veiled Apple Car. According to reports, this autonomous vehicle could take multiple forms. However, a focus on having this car use self-driving capabilities, in some form, has investors excited.

Of course, Apple stock soared to all-time highs on the news. However, for self-driving car companies like Aurora, this news furthers the idea that companies holding self-driving intellectual property could be bid up.

Whether a company like Aurora ultimately gets acquired or simply engages in a number of key partnerships remains to be seen. However, the potential catalysts for Aurora just got a lot juicier following this news.

Aurora Innovation remains a speculative play in a high-growth sector. While there is certainly upside potential with this stock, investors should also be aware that this is a $16 billion company that’s currently losing approximately $2 billion per year. Accordingly, there’s some fundamental risk to this stock, should news flow slow down any time soon.

On the date of publication, Chris MacDonald 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.

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