Since first listing on the NASDAQ stock exchange in 2022, FaZe Clan stocks have continued to experience a very significant decline in price. Because of this, FAZE shares could potentially be delisted by NASDAQ.
Then, what makes the stock price of FaZe Clan continue to fall? Let’s take a look at the following Gamedaim News article.
FaZe Clan’s Stock Journey Since Listing on NASDAQ
Back in 2022, FaZe Clan announced that they had been listed on the NASDAQ stock exchange through the SPAC merger. The valuation of this going public reached $1 billion. Initially, FaZe Clan’s stock was quite promising and managed to break $17.43 on September 2, 2022.
However, the price of the shares has been steadily declining since November and reached a low of $0.72 on January 30, 2023. Naturally, many felt quite a loss after they bought shares of FaZe Clan.
Reasons why stocks keep falling
From some of the information, there are several reasons why FaZe Clan shares have decreased. One of them is the failure to pay promised investments and concerns about cash that cannot cover this year’s expenses.
Furthermore, NASDAQ, which is where FaZe Clan’s shares reside, contains a rule that shares that continue to trade below $1 could potentially be delisted. This rule makes it so that stocks with prices below $1 for 30 days will get a notice from the relevant parties.
After receiving the notice, companies are given 180 days to re-qualify so that they can sell shares to the public again.
FaZe themselves wanted to avoid this issue in the first place. However, the action required their share price to rise again. Unfortunately, this coincided with the end of the six-month “lock-up” on FaZe’s staff.
Today, many tech and gaming companies elsewhere continue to lay off workers. As a result, investment into esports organizations has been sluggish and challenging, even for FaZe Clan, which is one of the organizations with a value of $400 million in 2022.
