FaZe Clan (NASDAQ:FAZE) stock isn’t doing so hot on Tuesday as investors start to lose hope following its SPAC merger.
The big news bringing FAZE stock down is an announcement from a few days ago. In that, the company revealed plans for a stock offering as a way to raise funds. This has it expecting to sell 70 million shares of its stock.
Stock offerings often drop the value of a company’s shares. That’s due to the increase in stock diluting the stakes that current shareholders own. As a result, some seem to be abandoning ship as shares of FAZE stock are sinking as a result.
Adding to that, FAZE stock is seeing heavy trading today. It’s still early on Tuesday morning but already some 1.6 million shares have moved. That’s above the company’s daily average trading volume of about 1.5 million shares.
When FaZe Clan went public through a SPAC merger, some speculative traders saw it as a potential short-squeeze target. While FAZE stock did jump following its debut, it looks like that momentum is finally coming to an end.
FaZe Clan is a public company representing a professional e-sports team of the same name. The group takes part in several tournaments with its main focus being Counter-Strike: Global Offensive.
FAZE stock is down 34.1% as of Tuesday morning.
There’s more recent stock market news traders will want to know about below!
InvestorPlace has all of that news ready to go in one place! Among that is what has shares of AeroClean (NASDAQ:AERC), FingerMotion (NASDAQ:FNGR) and Clover Health (NASDAQ:CLOV) on the move today. You can check out all of this news at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.