Shares of Regencell Bioscience Limited (RGC) experienced a sharp decline, plummeting 18.69% during Thursday's night session. This significant drop follows a similar 18% tumble on Wednesday, marking a continued downward trend for the biotech company.

The steep sell-off appears to be driven by investors reassessing the company's valuation in light of a recent stock split announcement. This reassessment comes on the heels of an extraordinary rally that saw Regencell's stock surge by an astonishing 59,900% year-to-date, a move that raised eyebrows given the company's lack of reported revenue.

Market analysts suggest that the current correction could be a natural pullback after such a meteoric rise, especially considering the absence of fundamental financial performance to support the previous valuation. As investors digest the implications of the stock split and reevaluate the company's prospects, the stock may continue to face volatility in the near term.