Even with Wall Street’s sharp drop in tech stock prices, you’d be hard-pressed to find a company that has fallen further than Israeli fintech company Pagaya Technologies (Nasdaq: PGY ). By early August, Pagaya’s stock price was above $30, giving it a market capitalization of more than $20 billion, making it Israel’s most valuable company, ahead of Check Point Software Technologies (Nasdaq: CHKP ), SolarEdge Technologies (Nasdaq: SEDG ) and NICE -Systems Ltd. (Nasdaq: COOL; TASE:COOL). The stock has now traded below $1, giving it a market capitalization of $674.23 million and is at risk of delisting if the situation doesn’t improve.
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In June, Pagaya began trading on the Nasdaq after completing its merger at a company valuation of $8.5 billion at a share price of $7. After falling briefly as expected, Pagaya’s share price started to rise as it was subjected to a “dumb squeeze”. Short traders who had bet against the stock were forced to buy the stock to cover their positions, but other investors had deliberately bought up the available stock, pushing the price up sharply in late July and early August as short traders sought out the scarce stock. Since then, the share price has fallen by 97%.
Pagaya was founded in 2016 by CEO Gal Krubiner, CRO Yahav Yulzari and CTO Avital Pardo. Pagaya provides P2P credit and loans through a platform based on machine learning technology.
Krubiner recently told “Globes,” “I don’t think we’re an Israeli GameStop. During that same period I was working like crazy, 24/7, in flight. So in terms of everyday life, all that had no effect. “
He says he had no intention of selling any shares. “Selling shares doesn’t work that way, and it wasn’t the intention either. We came here to build something very sustainable. It sharpens investors’ view of our business. People check how good our business is.”[plantosellanyshares”Sellingsharesdoesn’tworklikethatandalsotherewasn’tthedesiretoWecametobuildsomethingverysustainablehereItsharpenstheinvestors’viewofourbusinessPeoplecheckhowgoodourbusinessis”[plantosellanyshares”Sellingsharesdoesn’tworklikethatandalsotherewasn’tthedesiretoWecametobuildsomethingverysustainablehereItsharpenstheinvestors’viewofourbusinessPeoplecheckhowgoodourbusinessis”
On both the New York Stock Exchange (NYSE) and the Nasdaq, the stock price must be above $1 over time for the listed company to continue to qualify for trading on Wall Street. After 30 days of a stock price below $1, the company receives a warning letter from the stock exchange management and must act to correct the situation, or it will be delisted.
Published by Globes, Israel business news – en.globes.co.il – November 23, 2022.
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