Swiggy stock falls 5% again: What's behind the losing streak
What's the story
Swiggy's share price witnessed a massive fall of over 5%, continuing its losing streak for the fifth consecutive session. The shares fell as much as 5.77% to ₹359 apiece on the BSE today. The fall comes as part of a broader trend with Swiggy's shares declining over 21% in a week and over 26% in a month. Swiggy shareholders have collectively lost an estimated ₹40,250 crore since the beginning of the year.
Q3 results
Investors offloading stock due to poor Q3 results
Investors have been offloading the Swiggy stock after the company reported weaker-than-expected Q3 earnings. Swiggy's Q3 EBITDA losses exceeded Street estimates, while its net loss widened to ₹799 crore. Today's drop in the stock price comes just days after a reported technical glitch on the company's grocery delivery service, Swiggy Instamart. The glitch reportedly enabled users to get up to ₹5 lakh in free cash.
Lock-in period
Lock-in period ends today, adding pressure on the stock
In response to the glitch, some customers reportedly received calls from Swiggy representatives. They informed them about the glitch and requested a return of the delivered items. Separately, Swiggy's share price is facing selling pressure as its IPO lock-in period expired today, freeing up approximately 6.52 crore shares (3% of its equity) for trading. While these shares are now eligible for sale, it doesn't guarantee they will be traded immediately.