Support.com Inc. (SPRT) shares declined 6.95% in after-hours on Tuesday, September 14, 2021, and closed the daily trading at $10.98. Even in the regular trading session of Tuesday, SPRT’s stock lost 38.22%. SPRT shares have risen 481.28% over the last 12 months, and they have moved down 38.86% in the past week. Over the past three months, the stock has gained 175.06%, while over the past six months, it has surged 456.60%.
Let’s see why did it face negativity on Tuesday?
SPRT & GREE merger update
On September 14, 2021, Greenidge Generation Holdings Inc. (GREE) closed its previously announced merger with Support.com, Inc (SPRT). Support.com shareholders will receive 0.115 shares of Greenidge Class A Common Stock for each share of Support.com Common Stock.
Support.com will continue to operate its existing lines of business as a wholly-owned subsidiary of Greenidge. The combined company will be led by Greenidge Chief Executive Officer Jeff Kirt. Greenidge expects its Class A Common Stock to commence trading tomorrow morning on the NASDAQ Global Select Market under the ticker GREE.
SPRT recent financial results announcement
On August 13, 2021, Support.com, Inc (SPRT) reported unaudited financial results for its second quarter ended June 30, 2021.
Q2 2021 financial highlights
- SPRT reported total revenue of 8.5 million for Q2 2021 compared to $11.0 million in the second quarter of 2020.
- In Q2 2021, the gross profit was $3.0 million compared to $3.9 million in Q2 2020.
- Operating expenses were $3.9 million in Q2 2021, compared to $3.4 million in Q2 2020.
- It suffered a net loss of $0.8 million, or $0.03 per share, in the second quarter of 2021, compared to net income of $0.6 million, or $0.03 per share, in the second quarter of 2020.
- The company had cash, cash equivalents, and short-term investments of $38.5 million on June 30, 2021, compared with $29.7 million on June 30, 2020.
SPRT launched a new technical platform
On August 4, 2021, Support.com, Inc (SPRT) announced the launch of a new platform, Homesourcing℠ Cloud, to expand its technical support services. Homesourcing℠ Cloud is a secure, proprietary cloud-based platform supporting a globally distributed workforce. It gives home-based experts access to a suite of tools that allow them to solve even the most complex problems.
The recent merger approval by the shareholders was the reason behind its loss on Tuesday and we can expect it to further go down in the coming trading sessions.