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Buzzfeed Shares Crater: Down 60% As SPAC Bloodbath Worsens
Kick a media company when they're down - it's so much easier![Zero Hedge] - As shares of "pre-revenue" companies have been absolutely clobbered during the selloff that has afflicted US stocks since the start of the year, shares of the recently de-SPAC'd Buzzfeed are down 60% from their offering price - the $10/share that's typical of pre-deal SPACs. Shares of the firm, which now trades on the Nasdaq under the ticker "BZFD", have sunk to a new low below $4 a share during Tuesday's market ructions. 'NASDAQ today, pink sheets tomorrow!' We have noted many times that BuzzFeed, a languishing darling of the mid-2010s VC love affair with "hip" "progressive" digital-media companies, has never been profitable, and while it's revenues have climbed somewhat in recent years, it remains modestly unprofitable. Still, with a pesky new union dedicated towards battling with management for higher wages (even while wages at the company remain very attractive compared with the rest of the digital media space), CEO Jonah Peretti has his work cut out for him. The company's market value has fallen without stopping since its December debut trading under the "BZFD" ticker. 'Fallen' is an interesting word - click on the link to see a chart that looks like a ski run down Tuckerman's Ravine or Cannon Mountain. Posted by: Raj 2022-01-25 |
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