Data Storage slumps as meme run fades into memoryAfter gaining meme stock status earlier this month, Data Storage Corporation has been on a bear run of note, extending losses by almost 28% to take its place among TradingView’s top losers on Monday after pricing a share sale.
Data Storage Corp had a turn on the meme stock rollercoaster earlier in July, with a jump of 32% on July 7 as its name peppered the pages of Twitter, but it wasn't long before the fun part was over and the queasiness set in – all those gains were lost less than a week later. The stock has spent nearly every day since then in the red, and saw its biggest loss on Monday when it sank nearly 28%. Data Storage provides cloud infrastructure as a service with a focus on data recovery and business continuity services, and works with a number of big dog tech companies like IBM (IBM), Dell (DELL), and VMWare (VMW).
The tech company’s moody Monday came as investors reacted to Data Storage entering into a purchase agreement with a number of institutional investors to buy $8.3 million of common stock, and is allowing the investors to buy shares of its common stock in a concurrent private placement. The purchase price for a single share of Data Storage stock and 0.75 warrants is $6.04. Prices closed at $5.94 on Friday, and Monday’s losses took the stock down to its lowest closing price since October 2019.