The Purplebricks share price has hit an all-time low of £2.09p on London’s AIM stock exchange, a decrease of 59% on its highest price in July 2017 of £5.11p.
After opening on the exchange at £1 a share in January 2016 the Purplebricks share price showed few signs of promise before lifting off a year later and increasing five-fold during a feverish few months of City speculation.
But since July last year this ‘bubble’ has been slowly deflating, particularly so over the past six weeks.
Plenty of head scratching must be in progress at the company’s headquarters in Solihull; not so long ago everything it announced pushed the Purplebricks share price higher, but not now.
Recent announcements including buoyant UK results, a £125 million cash injection from German media giant Axel Springer, a move into Florida and the purchase of a Canadian hybrid agency have all failed to spur on City investors.
Less flattering news it may have preferred to keep under wraps has made it into the public domain recently, which is likely to have weakened investor interest in its stock.
More recently this has included structural problems within the overall Australian property market and internal difficulties within its fledgling Oz operation, as The Negotiator reported recently, plus mounting losses both in the US and Australia.
The next test of its performance will come on the 6th November when Purplebricks’ trading update for the first six months of its financial year are published.