THG shares even more volatile as they reach a new low
THG shares continued to struggle this week with the business losing almost 20% of its market capitalisation on Monday as the share price headed downwards.
While the shares recovered quite a bit of the losses in early trading on Tuesday, as the day wore on, they fell back again so that the shares were up less than 2% by mid-day.
While that may not affect the day to day running of the business, it means its overall market capitalisation is now only £1.51 billion, compared to the £8 billion+ it had been at its peak. The firm originally listed its shares on the London Stock Exchange a little over a year ago.
That also means disgruntled investors and a management team that has to focus on keeping them happy as much as on running the business, as well as a general feeling of negativity around the THG operation.
The fall in the share price came after Citigroup analysts on Friday downgraded their forecasts for the company’s earnings after THG had warned that 2021 is likely to have missed forecasts.
Not that the latest sell-off of THG shares was all linked to its own issues. Monday’s drop came as the wider technology sector also suffered.
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