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I don’t know anything about this stock. But a 50% one-day drop in any stock is noteworthy. I hope you don’t own a lot of this. I’m waiting for things to start “breaking” as the Fed cranks up rates too high too fast. Just don’t know where the first cracks may occur or whether this is at all related. As tech has been laying off workers and the company’s statement mentions rising rates … it would seem this is related to the Fed’s excessive policies which appear determined to break the back of inflation by wrecking the economy.
Yes - Bloomberg is reporting some contagion … a big bank sell off today. Getting interesting. You’ve posted in OT. You may possibly want to move this to the investing forum?
Extended Excerpt from linked article:Shares of SVB Financial Group (SIVB) are cratering after the holding company for Silicon Valley Bank announced it was seeking to raise $2.25 billion in stock sales in order to shore up its financial position. SVB said it plans to sell $1.75 billion of common equity and mandatory convertible preferred shares. In addition, it indicated that global growth equity fund and long-standing client General Atlantic is purchasing $500 million worth of stock.
In a letter to investors, CEO Greg Becker explained that the funds are needed because the bank expects "continued high interest rates, pressured public and private markets, and elevated cash burn levels from our clients as they invest in their businesses." SVB is a major lender to startups, especially in the tech sector, and has been hurt as spending on them dropped. The company noted in its January investor call that it anticipated slow public markets, further declines in venture capital (VC) deployment, and an elevated cash burn in the first half of 2023.
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Yes - Bloomberg is reporting some contagion … a big bank sell off today. Getting interesting.
You’ve posted in OT. You may possibly want to move this to the investing forum?
Extended Excerpt from linked article: Shares of SVB Financial Group (SIVB) are cratering after the holding company for Silicon Valley Bank announced it was seeking to raise $2.25 billion in stock sales in order to shore up its financial position. SVB said it plans to sell $1.75 billion of common equity and mandatory convertible preferred shares. In addition, it indicated that global growth equity fund and long-standing client General Atlantic is purchasing $500 million worth of stock.
In a letter to investors, CEO Greg Becker explained that the funds are needed because the bank expects "continued high interest rates, pressured public and private markets, and elevated cash burn levels from our clients as they invest in their businesses." SVB is a major lender to startups, especially in the tech sector, and has been hurt as spending on them dropped. The company noted in its January investor call that it anticipated slow public markets, further declines in venture capital (VC) deployment, and an elevated cash burn in the first half of 2023.