What's Going On With Trump-Linked Phunware Stock Today?
Portfolio Pulse from Adam Eckert
Phunware Inc (NASDAQ:PHUN) announced a $10 million public offering, planning to sell 40 million shares at $0.25 each for working capital and expansion, including its PhunCoin and PhunToken initiatives. The company's stock fell 16.6% following the announcement. This comes after a 375% rally year-to-date, partly due to its ties with former President Donald Trump, for whom it developed a mobile app portfolio for the 2020 reelection campaign.
February 07, 2024 | 2:38 pm
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Phunware Inc announced a $10 million public offering at $0.25 per share, aiming to use proceeds for working capital and expansion. The stock dropped 16.6% following the news.
The announcement of a public offering often leads to a short-term decline in stock price due to the dilution of shares. Phunware's significant drop can be attributed to this, compounded by the relatively large size of the offering compared to the company's market cap. The stock's recent rally due to its Trump ties might have heightened sensitivity to such news.
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