Buzzfeed is capturing attention after it came to light that the leftist news organization is in danger of being booted from the NASDAQ exchange following its share prices tumbling to well below $1.
On May 31, the NASDAQ reportedly delivered a letter to Buzzfeed to say that its new stock price has been below $1 for the past 30 business days, meaning it could soon be taken off the exchange.
BuzzFeed saw a stock price of about $0.65 a share at the market close on Monday.
“The Company has been provided an initial period of 180 calendar days, or until Nov. 27, 2023 (the ‘Compliance Date’), to regain compliance with the Bid Price Requirement,” states the NASDAQ notice.
“If, at any time before the Compliance Date, the bid price for the Company’s common stock closes at $1.00 or more for at least 10 consecutive business days … the Staff will provide written notification to the Company that it has regained compliance with the Bid Price Requirement,” it reads.
“If the Company does not qualify for, or fails to regain compliance during, a second compliance period, then the Staff will provide written notification to the Company that its common stock will be subject to delisting.”
This tumble in share prices and risk of removal from the NASDAQ comes at a time of great financial struggles for the left-wing outlet. Despite reportedly securing a 10 percent revenue increase of $436 million in 2022, Buzzfeed managed to suffer a net loss of $201.2 million in the same year.
The company did much better in the year prior, netting a total of $25.9 million. Buzzfeed has also had massive staff cuts in recent times, reducing its workforce by 12 percent in December 2022, before enacting another reduction of 15 percent of staff in April.
"We've faced more challenges than I can count in the past few years: a pandemic, a fading SPAC market that yielded less capital, a tech recession, a tough economy, a declining stock market, a decelerating digital advertising market and ongoing audience and platform shifts," CEO Jonah Peretti wrote in a note to staff during the second layoff. "Dealing with all of these obstacles at once is part of why we've needed to make the difficult decisions to eliminate more jobs and reduce spending."
As it stands now, Buzzfeed must raise its stock price before November 27 in order to avoid the risk of being wiped off the NASDAQ.
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