The absolute value of one share doesn't really mean anything. No matter how you slice it, down 40% means that the company lost 40% of its value overnight. That's pretty Earth shattering for any company IMO.
Did you just answer your own question? Sure, the share price is a psychological element and, in conjunction with pre-fractional-ownership, it helps explain the prevalence of splits above $100/share. But no, the individual unit price doesnt affect true “value”, marketcap, or fundamentals like future discounted profit model.
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Stock down over 39% since this announcement, brutal.
https://finance.yahoo.com/quote/UBI.PA/
down 64% over the last year, and 95% over the past five. yikes
40% is not earth-shattering when it closed at $6.73 yesterday.
The absolute value of one share doesn't really mean anything. No matter how you slice it, down 40% means that the company lost 40% of its value overnight. That's pretty Earth shattering for any company IMO.
If it does not mean anything, why do day traders concentrate on sub $10 stocks and long term investors ignore them?
Did you just answer your own question? Sure, the share price is a psychological element and, in conjunction with pre-fractional-ownership, it helps explain the prevalence of splits above $100/share. But no, the individual unit price doesnt affect true “value”, marketcap, or fundamentals like future discounted profit model.