SVB Drops Most on Record as Startup Clients Face Cash Crunch
- Wedbush analyst cuts price target in wake of updates
- Shares plunge to their lowest level since September 2016
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SVB Financial Group took steps to shore up capital after being hit by losses on its securities portfolio and a slowdown in funding at the venture capital-backed firms it banks. The company’s shares plunged by the most on record.
The slump in the stock, its worst in more than 35 years, came after Santa Clara, California-based SVB announced a stock offering, sold substantially all of the available-for-sale securities in its portfolio and updated its forecast for the year to include a sharper decline in net interest income.