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.
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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:
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.