Buzzfeed is at risk of being delisted from the NASDAQ exchange due to its share prices falling below $1.
According to reports, the NASDAQ sent a letter to Buzzfeed on May 31 stating that its stock price has been below $1 for the past 30 business days, which could result in its removal from the exchange.
On Monday, BuzzFeed’s stock price closed at approximately $0.65 per share.
The company has been given 180 days to get in line with the bid price necessary to remain on NASDAQ.
If the company’s common stock bid price closes over a dollar or more for at least 10 business days in a row before the Compliance Date, the Staff will notify the Company in writing that it has regained compliance with the Bid Price Requirement. If the company doesn’t meet the requirements or can’t meet them again, they will be notified in writing that their common stock will be removed from the list.
The left-wing outlet is currently facing financial struggles, which coincide with a drop in share prices. The “buzz” of the possibility of being delisted from the NASDAQ is a psychological barrier that is hard to overcome. Buzzfeed’s revenue reportedly increased by 10 percent to $436 million in 2022, but the company suffered a net loss of $201.2 million in the same year.
The company profited $25.9 million in the previous year, which was a better performance. Buzzfeed underwent significant staff reductions, cutting its workforce by 12 percent in December 2022 and an additional 15 percent in April.
The CEO, Jonah Peretti, wrote to the staff during the second layoff that they have encountered numerous challenges in the past few years, including a pandemic, a declining SPAC market, a tech recession, a difficult economy, a decreasing stock market, a slowing digital advertising market, and continuous audience and platform changes. Dealing with multiple obstacles has led to difficult decisions such as job cuts and spending reduction.