Serve Robotics Inc. is experiencing a decline in its stock price following the announcement of an $80 million registered direct offering. The offering involves the sale of 4,210,525 shares of common stock, which is expected to close on January 7, 2025. This move is anticipated to result in approximately 8.5% dilution to existing shareholders, potentially impacting the stock's value. The funds raised are intended for general corporate purposes, including working capital, but the dilution effect appears to be weighing on investor sentiment.
On Reddit, discussions reflect mixed reactions to the stock's current situation. Some users are contemplating whether to sell and take profits, with one user advising, "Taking profits is never wrong. But do it only if you know a stock you like more." Others express optimism about the company's long-term growth potential, suggesting that the stock still has room to grow in the coming days. Despite the dilution concerns, the involvement of institutional investors in the offering indicates confidence in Serve's business model and growth prospects.
Serve Robotics Inc. (SERV) is currently trading at $19.26, down 15.86% from the previous close of $22.89. The stock opened at $19.49 and has fluctuated between a high of $20.44 and a low of $19.03. Despite being just 30 minutes into the trading day, the volume is already at 7,383,503 shares, representing 90.13% of its average daily volume of 8,192,011, indicating significant trading activity this morning.