In short, Pagaya, Israel’s most valuable partner, lost 97% in value

Even with tech stocks plummeting on Wall Street, you’d be hard-pressed to find a company that’s fallen lower than Israeli fintech company Pagaya Technologies (Nasdaq: PGY ). In early August, Pagaya’s stock price topped $30, giving it a market value of more than $20 billion, making it Israel’s most valuable company, surpassing Check Point Software Technologies (Nasdaq: CHKP ), SolarEdge Technologies (Nasdaq: SEDG ) and NICE. -Systems Ltd. (Nasdaq: BEAUTIFUL; TASE:BEAUTIFUL). The stock price has now fallen below $1, giving it a market value of $674.23 million, and is at risk of delisting if things don’t improve.







In June, Pagaya began trading on the Nasdaq after completing a merger worth $8.5 billion at a share price of $7. After falling short as expected, Pagaya’s share price started to rise as it became the subject of a “short squeeze”. Short traders who bet against the stock were forced to buy the stock to secure their positions, but other investors deliberately bought existing shares and drove the price up sharply in late July and early August as short traders sought the scarce stock. Since then, the stock price has fallen 97%.

Pagaya was founded in 2016 by CEO Gal Krubiner, CRO Yahav Yulzari and CTO Avital Pardo. Pagaya provides P2P lending and loans through a platform based on machine learning technology.

Krubiner recently told Globe: “I don’t think we’re an Israeli GameStop. At the time, I was working on flights like crazy 24/7. So in terms of day-to-day practicality, none of this had any impact.”

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On both the New York Stock Exchange (NYSE) and the Nasdaq, the stock price must be above $1 over time for a traded company to continue to meet trading conditions on Wall Street. 30 days after the stock price falls below $1, the company receives a warning letter from the stock exchange management and must take action to correct the situation or it will be delisted.

Globes, Israel business news – en.globes.co.il – published on November 23, 2022.

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