Is Starbox Group (STBX) Stock the Next Big Meme Stock?

  • Starbox (STBX) opened at $4, but its first trade came at $27.
  • Some 22 million shares were traded on Aug. 23 after 5 million were offered.
  • Starbox opened below $14 today, and its natural value may be lower.
STBX stock - Is Starbox Group (STBX) Stock the Next Big Meme Stock?

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Starbox Group Holdings (NASDAQ:STBX) stock rose nearly 300% on its initial public offering (IPO) day, after trading as high as $46.21 per share.

Its closing price on Aug. 23 was $15.40. STBX stock opened Aug. 24 at between $13.11 per share. It closed the day yesterday with a market capitalization of nearly $700 million.

The strong start had some social media analysts comparing STBX to Magic Empire Global Limited (NASDAQ:MEGL) and AMTD Digital (NYSE:HKD). Both made investors fortunes after their IPOs earlier in the summer.

Like those two companies, Starbox is an Asian fintech. Unlike those two companies, Starbox is based in Malaysia, not Hong Kong.

STBX Stock: Fast Out of the Box

There were hints of what was to come in our premarket coverage. Starbox was trying to justify a market cap of $200 million on listed revenue of $3.17 million. But it was growing fast a year ago and appeared quite profitable, with $1.9 million of operating cash flow. The pitch is to create a big data pool about payments, digital ads and cash rebates throughout southeast Asia.

But the morning action went beyond that, as InvestorPlace’s Chris MacDonald wrote later in the day. Shares opened at $27 after being sold at $4. The IPO was handled by Network 1 Financial Group. Network 1 also handled the Magic Empire IPO.

The late-day selloff was predictable. Trading was very heavy at 22 million shares. Only 5 million shares were offered.

The overnight fall may discourage the bulls at Stocktwits. They were predicting a lot of European buying in the premarket. That did not happen.

What Happens Next?

Stocks with few shares to trade can move quickly in price. Social media chatter about Starbox, monitored at MarketBeat, indicate there remains interest in the name among small traders.

At some point, however, Starbox will find its natural price, as other Asian IPOs have done. That price will likely be lower than today’s opening. You can still make money here, especially if there’s a short squeeze. But Starbox has already been to the Moon and back.

On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.

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