Double Digit NASDAQ Stock Winners: SQBG, METX, AMBA
8:10 am Thursday, September 02nd, 2021
Following are major stock gainers on Nasdaq in Wednesday’s trading session:
Sequential Brands Group, Inc. (NASDAQ:SQBG) was the active stock gainer on Wednesday and soared 53% to $7.86 after the company announced that it, together with its wholly-owned subsidiaries, has commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware (the “Court”).
The Company determined that, as a result of the significant debt on its corporate balance sheet, it was no longer able to operate its portfolio of brands. Accordingly, in conjunction with the filing, the Company will pursue the sale of all or substantially all of its assets under Section 363 of the U.S. Bankruptcy Code. The Company will seek approval from the Court of auction and bidding procedures that are designed to maximize the value of the Company’s assets through an open process that enables interested buyers to submit a bid or bid(s) on the Company’s assets. The Company believes that each of its brands is well-positioned for profitability under the stewardship of new owners.
Meten EdtechX Education Group Ltd. (NASDAQ:METX) was another notable winner as the stock went up 37% to end the session at $0.92 after the company announced the pricing of an underwritten public offering of ordinary shares and pre-funded warrants to purchase ordinary shares (“Offering”), with gross proceeds to the Company expected to be approximately $60 million, before deducting underwriting discounts and commissions and other estimated expenses payable by the Company. The Offering equates to 200,000,000 of the Company’s ordinary shares at a price of $0.30 per share.
Ambarella, Inc. (NASDAQ:AMBA) surged 27% to $131.96 after management reported a big earnings beat for its fiscal second quarter — and forecasting that it would deliver another beat in Q3. Prior to the report, analysts had forecast that Ambarella would earn $0.25 per share on $75.7 million in sales for the period, which ended July 31. In fact, it earned $0.35 per share, and on sales of $79.3 million.
The news wasn’t all great. The earnings numbers that got investors so excited were actually only “pro forma,” and didn’t account for items that Ambarella considers one-time in nature. For earnings calculated according to generally accepted accounting principles (GAAP), Ambarella actually lost $0.20 per share for the quarter.
