WSB: Naked Brand stock price drops 70% off highs

Shares of Naked Brand (NASDAQ: NAKD) are trading over 13% lower in pre-open Tuesday, a day after plunging nearly 14%. 

Fundamental analysis: Nearly $50 million raised

The company, which sells products in the intimate apparel and swimwear sectors, said it successfully raised $50 million through the registered direct offering. It sold 29,415,000 of its ordinary shares at a price of $1.70 per share, which is at-the-market under Nasdaq rules.

Elsewhere, the WSB saga has continued to dominate headlines around the globe. Robinhood, an online trading platform that found itself in a midst of the trading war, announced it raised a further $2.4 billion to total $3.4 billion in new capital raised since Friday. 

In addition, Reuters reports that an online broker is in talks to raise an additional $1 billion in new debt to bolster its liquidity. 

Technical analysis: Profit taking facilitates a pullback

The Naked Brand stock has been one of the beneficiaries of the WSB saga. The stock soared over 250% on Wednesday, before rallying an additional 130% on Thursday. However, profit-taking from early investors led to a rotation lower.

Overall, NAKD stock price now trades over 70% lower compared to Thursday’s highs. The stock fell 13.94% yesterday and it is trading over 13% lower in pre-open Tuesday. Normalization of the market environment may lead to a dip below the $1.00 mark. 

Summary

The Naked Brand stock has rotated lower to trade over 70% lower compared to Thursday’s highs as the short squeeze momentum slows down.