Why Global-E Online Tanked 19.4% in October
Shares of Global-E Online (NASDAQ: GLBE) tanked 19.4% in October, according to data from S&P Global Market Intelligence. The high-flying IPO didn't have any news releases in the month of October, so this move looks like standard volatility that is typical for new stocks. The company also closed on a secondary offering of shares in September, which could have had an impact on the stock price decline.
On Sep. 15, Global-E Online closed on a secondary offering of its shares. This was not meant to raise funds for the company but to allow some of its existing shareholders to exit their positions. The offering was for 13.8 million of Global-E's approximately 145 million shares outstanding and was sold to the public at a price of $64 per share. Normally, when a company does a common stock offering, investors will bid down the stock to at or below the offering price, bidding down indicates what large shareholders and the company itself think the business is worth. This happened here, with Global-E shares slowly tumbling after the news. The stock currently trades at around $59 a share.
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Source Fool.com
