Kodiak AI shares plunge after $100 million private placement
Updated
Updated · MarketWatch · May 7
Kodiak AI shares plunge after $100 million private placement
8 articles · Updated · MarketWatch · May 7
The stock fell 37% to $5.74 after hours on Thursday after the autonomous vehicle company sold about 15 million shares at $6.50, down from a $9.10 close.
Kodiak said existing investors, including an Ares Management affiliate, and new investors joined the financing, which it said would support growth, profitability and future free cash flow.
The company also reported first-quarter profit of $26.5 million on $1.8 million revenue, beat analyst expectations, and announced projects with General Dynamics Land Systems and West Fraser Timber.
Profitable with new military contracts, why did Kodiak AI’s stock crash 37% after raising $100 million?
Is Kodiak's pivot to military vehicles and logging a brilliant strategy or a sign of trouble in autonomous trucking?