Why Cardlytics (CDLX) Stock Is Down 30%

Cardlytics Inc CDLX shares are trading lower by 34.6% to $13.24 during Tuesday’s session after the company announced a $150 million proposed convertible senior notes offering.

The company says it plans to offer $150.0 million aggregate principal amount of convertible senior notes due 2029 in a private offering to qualified institutional buyers. The notes will be unsecured obligations, accruing interest semi-annually and maturing on April 1, 2029, with conversion options for note holders.

Cardlytics intends to use part of the proceeds to repurchase some of its existing 1.00% convertible senior notes due 2025 and for general corporate purposes. The terms of repurchase transactions and associated derivative activities could affect the market price of Cardlytics’ common stock.

Additionally, Cardlytics may enter into unwind transactions with financial institutions to terminate existing capped call transactions, potentially impacting the market price of its common stock.

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How To Buy CDLX Stock

By now you're likely curious about how to participate in the market for Cardlytics – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Cardlytics, which is trading at $14.04 as of publishing time, $100 would buy you 7.12 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, CDLX has a 52-week high of $20.52 and a 52-week low of $2.52.