SVB Financial Group shares extended their plunge before being halted in premarket trading for pending news as prominent venture capitalists recommended companies withdraw their money from the lender, sparking further worries over its financial health and liquidity in the wider banking sector.
The stock, which fell by as much as 69% premarket on Friday,
Adding to SVB's woes, venture capitalists including Peter Thiel's Founders Fund urged portfolio businesses to limit their exposure to the firm. Meanwhile, analysts cut their ratings on the stock, with Raymond James downgrading the bank to market perform and Truist Securities lowering it to hold, citing concerns over clients pulling funds and the pressure from higher interest rates.
"With the increasing risk of accelerated deposit outflows, we believe there is too much uncertainty to recommend the stock to investors," Truist analyst Brandon King wrote in a note.
