SmileDirectClub is now the worst unicorn IPO of 2019, down nearly 60% from its debut

Investing

Jordan Katzman, co-founder of SmileDirectClub Inc., left, and Alex Fenkell, co-founder of SmileDirectClub Inc., watch traders during the company’s initial public offering (IPO) at the Nasdaq MarketSite in New York, U.S., on Thursday, Sept. 12, 2019.

Michael Nagle | Bloomberg | Getty Images

Shares of SmileDirectClub plummeted more than 13%, on Monday after California Governor Gavin Newsom signed a bill that protects consumers who use teledentistry products. Bill 1519, which he extended through January of 2024, gives the Dental Board of California oversight over all dental operations within the state.

“While this bill does not preclude SmileDirectClub’s continued operations in California, it will create unnecessary hurdles and costs to Californians that need care but struggle to afford it. The undebated, clinically unsupported, and ill-advised policy changes that are included in this bill – a bill that was intended to reauthorize the Dental Board of California until last-minute policy additions were added – have created arbitrary barriers to technological innovation,” SmileDirectClub said in a statement.

The stock has struggled since going public just over a month ago, with shares currently down 58% from its IPO price of $23. The stock began trading on September 12.

Despite the regulatory headwinds, Wall Street remains positive on the stock. Eight major Wall Street firms initiated coverage on the stock last Monday with buy ratings and rave reviews, despite the stock’s poor debut.

Articles You May Like

If you’re still missing your tax refund, you’ll soon receive 7% interest from the IRS — but it’s taxable
Discussing Money And Love Is Asking For A Difficult Conversation
Ford claims No. 2 spot in EVs behind Tesla – but gap remains wide
Stocks making the biggest moves premarket: Silvergate Capital, MGM Resorts, Bilibili, Murphy Oil & more
Senate approves bill enforcing railroad labor agreement before strike deadline, sends to Biden

Leave a Reply

Your email address will not be published. Required fields are marked *