Why DigitalOcean Stock Dived by Almost 11% Today
A darling of a tech stock last week, DigitalOcean (NYSE: DOCN) was looking rather wet on Monday. On news that the company is to launch a new round of capital raising, investors eagerly traded out of the cloud computing specialist's equity to leave it with an almost 11% loss on the day. Other stocks fared much better, as the S&P 500 index only dipped by 0.3%.
Before market open, DigitalOcean announced that it aims to float a $500 million issue of convertible senior notes. These securities mature on Aug. 15, 2030, if not converted, and the initial purchasers will have an option to collectively buy another $75 million aggregate principal of the notes within a period of 13 days from issue.
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Source Fool.com
