Tiny Telehealth Stock Sinks 85% Amidst Wild IPO Rally CollapsesSingaporean telehealth provider Mobile-Health Network Solutions ( NASDAQ:MNDR ) has experienced a significant drop in its stock price, dropping 85% to $3.39 a share, below its $4 IPO price. The stock, which surged over 580% in its first weeks of trading, was one of the hottest US IPOs of the year. The telehealth provider's market value was over $925 million at the time of its IPO. However, the stock's plunge erased $635 million from its valuation, bringing it to about $115 million.
The IPO was led by Network 1 Financial Securities Inc., a New Jersey brokerage with a history of wild stock offerings. The offering this year was the firm's first since 2022. The telehealth provider generated $7.9 billion in revenue in the fiscal year through June 30, but lost about $3.2 million in the period.
Technical Outlook
Mobile-Health Network Solutions ( NASDAQ:MNDR ) stock is down 84.64% as of the time of writing trading within the oversold region with a Relative Strength Index (RSI) of 11. However, investors ought to be careful of a trend reversal as the market is full of surprises.
