Jordan Katzman, co-founder of SmileDirectClub Inc., red, and Alex Fenkell, co-founder of SmileDirectClub Inc., watch traders during the company’s initial public offering (IPO) at the Nasdaq MarketSite in New York, U.S., on Thursday, Sept. 12, 2019.
Michael Nagle | Bloomberg | Getty Images
Appropriations of SmileDirectClub plummeted 12.9% on Monday after California Gov. Gavin Newsom signed a bill that protects consumers who use teledentistry consequences. Bill 1519, which he extended through January of 2024, gives the Dental Board of California oversight over all dental enterprises within the state.
The stock is now down almost 60% since it went public just over a month ago, cooking it the worst-performing IPO this year among companies that went public with a valuation over $1 billion. The capital began trading on Sept. 12. Lyft is the second-worst unicorn performer since its IPO, down about 45%.
“While this beak does not preclude SmileDirectClub’s continued operations in California, it will create unnecessary hurdles and costs to Californians that necessary care but struggle to afford it. The undebated, clinically unsupported, and ill-advised policy changes that are included in this note — a bill that was intended to reauthorize the Dental Board of California until last-minute policy additions were supplemented — have created arbitrary barriers to technological innovation,” SmileDirectClub said in a statement.
Despite the regulatory headwinds, Partition off Street remains positive on the stock. Eight major Wall Street firms initiated coverage on the stock behind Monday with buy ratings and rave reviews, despite the stock’s poor debut.
— With reporting by Gina Francolla