Starbox Group Holdings Share Price: Reasons for Today’s Decline

Starbox Group Holdings NASDAQ:STBX

Brief Summary

There does not appear to be any evident rationale behind today’s drop in the stock price.

Another turbulent initial public offering (IPO) coming out of Asia is Starbox Group Holdings.

Starbox Group Holdings (NASDAQ:STBX)

There is no clear explanation for why the stock of the Malaysian digital advertising and payments company Starbox Group Holdings (NASDAQ:STBX) is trading more than 21% lower as of 11:48 a.m. Eastern Time today, despite the fact that the stock has traded with a lot of volatility ever since the company went public the previous week.

Then What?

The business that provides digital advertising and payments solutions issued 5 million shares at a price of $4 per share for a total offering of $20 million. Starbox’s share price reached an all-time high of $46.21 on the day of its initial public offering before retracing some of those gains later in the trading session. As of when this article was written, the price of a share of Starbox Group Holdings (NASDAQ:STBX) has recovered to a little above $5 after falling today.

When they went public earlier this year, several tiny Asian IPOs, such as AMTD Digital and Magic Empire Global Limited, encountered a phenomenon analogous to the one described above.

Starbox Group Holdings (NASDAQ:STBX) is a service that caters to small and medium-sized enterprises, many of which lack the resources necessary to establish in-house data management systems for marketing use. Starbox facilitates the marketing and sale of these companies’ products by connecting them with retail buyers on their behalf. It generates almost all its revenue by providing marketers on the platform with various digital advertising services. In addition, Starbox conducts transactions by acting as a provider of payment services and offers cash rebates.

Starbox Group Holdings (NASDAQ:STBX) had a profit of $1.25 million and revenue of $2.9 million for the six months that ended on March 31.

What’s Next?

Even though Starbox is still a relatively new company, its valuation appears to be quite high, given that its market worth is around 230 million dollars. There is no denying that unethical trading practices were behind the stock’s meteoric rise. Because of this, I do not intend to invest in the stock.

Featured Image:  Megapixl @Kiosea39

See Disclaimer Please

About the author: I'm a financial journalist with more than 1.5 years of experience. I worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan. I love to write about marketing and finance. Other than that, I like spending time in the gym and playing PC games.