Why Is QXO (QXO) Stock Down 80% Today?

QXO stock is down alongside registration statements for two private placements

By William White, InvestorPlace Writer Jul 30, 2024, 7:57 am EDT

Editor’s note: This article was updated on July 30 to correct that QXO had previously announced its two private placements. Share price movement today is in response to the company filing relevant registration statements. 

  • QXO (QXO) stock is down on Tuesday after filing registration statements for two private placements.
  • This comes after the company’s value has increased after serial entrepreneur Brad Jacobs’ initial investment in December.
  • That resulted in it losing $36 billion of its paper value in after-market trading yesterday.
QXO Stock - Why Is QXO (QXO) Stock Down 80% Today?

Source: shutterstock.com/G-Stock Studio

QXO (NASDAQ:QXO) stock is falling hard on Tuesday after the business application and technology company filed a registration statement for two previously announced private placements.

QXO filed the two registration statements for the private placements that resulted in shares of its stock falling in after-market trading this morning. That saw the company lose roughly $36 billion worth of its paper value.

With that fall, shares of QXO stock are now much closer to their implied value. This comes after some investors have pumped up the company’s shares across recent private placements, which raised a total of $4.12 billion at $9.14 per share. The company now has $5 billion in cash and no debt.

The company has said it will use the funds to make acquisitions in the building products distribution industry. It would essentially have it acting as a blank-check company. The original announcement would have seen it spin off SilverSun Technologies, but it has decided to retain that business.

QXO Stock Movement Today

QXO stock is seeing heavy trading on Tuesday with more than 369,000 shares traded. That’s already well above its daily average trading volume of about 48,000 shares as investors sell the stock this morning.

This has QXO stock down 79.9% as of Tuesday morning. It’s also worth noting that shares of QXO stock had lost 53.2% of their value year to date when markets closed yesterday. That is quite the switch from the company’s 12-month gain of 110%.

Investors will want to keep reading for more of the most recent stock market stories today!

We have all of the hottest market news that investors need to know about on Tuesday! Among that is what has shares of Imunon (NASDAQ:IMNN) stock up, the biggest pre-market stock movers this morning and more. All of that info is ready to go at the links below!

More Stock Market News for Tuesday

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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2024/07/why-is-qxo-qxo-stock-down-80-today/.

©2024 InvestorPlace Media, LLC