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FaZe Clan's Stocks Plummeted After Going Public On Nasdaq

FaZe Clan shares dropped by 30% almost immediately after the esports giant went public on Nasdaq.
FaZe Clan's Stocks Plummeted After Going Public On Nasdaq

From announcing million-dollar headquarters to cryptocurrency deals, and even fielding a roster of legendary players, esports organizations seemingly never stop reaching new heights of opulence and growth. Recently, gaming behemoth FaZe Clan made headlines on 20th July 2022 after officially launching as a publicly traded company similar to Apple or Google. This decision means fans can purchase a share of their favorite organization and help grow FaZe Clan.

FaZe Clan Shares Drop 30% After Going Public On Nasdaq

Faze Clan becomes public trading company Nasdaq stock exchange
FaZe Clan's shares plummeted BY 30% within its first day of trading. (Picture: FaZe Clan / Twitter)

After announcing its plans to go public on Nasdaq in October 2021, FaZe Clan has officially achieved its goal through a special purpose acquisition company (SPAC) merger deal of $715 million with a blank check company called B.Riley Principal 150 Merger Corp. The company of ninety-three individuals officially traded on Wednesday, 20th July 2022, opening up FaZe Clan to the world.

One small step for the esports industry, one giant step for FaZe Clan, as some fans would say. However, within hours of momentarily going public with its stock, FaZe Clan’s public shares began plummeting dramatically. Originally valued at $13 per share, the esports organization’s stocks dropped roughly 30%, putting the share at $9.06 in the hours that followed, finishing the first day of trading at an all-time low.

faze clan stock plummet
FaZe Clan's shares dropped to a low of $9 mere hours after launching. (Picture: FaZe Clan / Twitter)

This plummet is a colossal hit for FaZe Clan, especially during extreme economic climates. FaZe Clan’s transition from a private to a publicly shared company attempts to convert popularity and stardom to profitability and revenue growth.

Unfortunately, its rocky start doesn’t show fans or interested investors alike the promise of FaZe Clan’s scalability, but like all shares nowadays, nothing’s ever stable. As of writing, the stock is priced at $9.88 per share; however, experts predict that this price will recover to around $10-11 in the next few days (disclaimer: this is not financial advice).

Will this be one of the most significant regrettable decisions FaZe Clan has ever made, or will its shares meteorically rise after a series of rainy days? Only time will tell.

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Featured image courtesy of FaZe Clan.