The Nuix (ASX:NXL) share price is falling today. Here’s why

It hasn’t been a good week for the Nuix share price so far…

| More on:
dissapointed man at falling share price

Image source: Getty Images

The Nuix Ltd (ASX: NXL) share price is falling again today despite no news having been released by the company.

In fact, the most recent price sensitive news from the company hit the market in the middle of June. However, Nuix has been in the headlines multiple times since.

The Nuix share price is down 2.61% today. Shares in the technology company are swapping hands for $2.61.

Nuix shares also fell yesterday. Today’s drop brings its total losses for the week so far to about 6%.

Let’s take a look at the latest news about Nuix.

The latest news on Nuix

The Nuix share price is falling this week amid news of the Australian Securities and Investment Commission’s (ASIC) investigation into the company.

The company was back in the headlines on Sunday when The Australian reported ASIC Commissioner Cathie Armour has stood down from the body’s investigation into Nuix.

ASIC is currently investigating whether Nuix’s initial public offering (IPO) contained false statements.

Since its ASX debut in December 2020, the prophesied market darling has released 2 revenue downgrades, been the subject of an investigative media campaign, been investigated by the Australian Federal Police, and seen its CEO and CFO walk out.

Previously, Labor senator Deborah O’Neill questioned whether Commissioner Armour properly investigated Nuix’s IPO.

Armour is a former Macquarie Group Ltd (ASX: MQG) executive and, according to The Australian, has worked alongside Nuix board member Daniel Phillips.

Macquarie backed Nuix in the tech company’s float and still holds around 30% of Nuix’s shares.

In June, O’Neill used parliamentary privilege to flag Commissioner Amour’s involvement in Nuix’s IPO, saying:

What did Commissioner Armour not investigate? Why did she not investigate? What contact did she have from Macquarie in regard to this IPO that led her to such a complete abdication of responsibility in this regard? Did she even read the Nuix prospectus? Did any of her fellow commissioners at ASIC read and act on concerns validly raised?

Nuix shares fell 2.5% during the session following O’Neill’s comments.

Nuix share price snapshot

It’s no surprise the Nuix share price has been suffering on the ASX.

Right now, its shares have dropped 67% since its IPO, within which Nuix shares were offered to investors for $5.31 apiece. In early 2021 the Nuix share price hit its all-time high of $11.86.  

The company has a market capitalisation of around $850 million, with approximately 317 million shares outstanding.

Should you invest $1,000 in Nuix right now?

Before you consider Nuix, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Nuix wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares