The Timing Game: Why Serve Robotics Stock Tanked After Yesterday's Rally

Serve Robotics pulled off a classic move yesterday—ride the DoorDash partnership hype (stock up 29%), then immediately announce a $100M stock offering to cash in on the inflated price. Spoiler: the market wasn’t thrilled.

Here’s what happened:

  • SERV stock was already on fire this October, up 52% heading into yesterday
  • DoorDash partnership news sent it soaring another 29% in a single day
  • Today? Serve announced it’s selling 6.25M shares at $16 each to raise capital
  • Stock immediately cratered 9.6% as investors realized they’d been set up

The real issue: Serve is burning cash hard ($34M losses YTD) on minimal revenue (~$2M last year). They needed a lifeline, and timing the offering right after a major PR win was too good to pass up. Smart for the company, brutal for existing shareholders who got diluted.

The playbook is transparent, but apparently effective—at least for one day.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)