Why is MetaX Integrated Circuits stock sliding today?

MetaX Integrated Circuits (Shanghai) Co Ltd experienced a significant decline in its stock price today, sliding 7.3% to ¥493.38. The company attributed this drop to the upcoming release of 13.97 million locked-up shares, which will dilute the overall value of remaining shares. This move is expected to increase the company's total float by approximately 75%.

While MetaX is currently a pre-profitability company with a negative trailing earnings per share and recent losses, the stock's high beta and volatility make it especially vulnerable to sharp intraday declines even on days with minimal news. Technical indicators had already pointed to a bearish outlook for the stock heading into today's trading session.

However, the overall market sentiment did not provide much support, as global indices managed only a narrow range of movement. Chinese tech stocks also suffered losses on Thursday, driven by a surge in U.S. Treasury yields.