The reason why GRRR is underperforming, brokerages are restricting trading of GRRR, and a lesson for all retail investors

GRRR sounds like an amazing investment opportunity - AI company in a market that's ignored by big players and primed to explode in value. So why isn't it? The stock is down 61% over the last year despite the hype around AI. It's because of share dilution

Don't know what share dilution is? Let's say a company has 100 shares outstanding and you own 10 shares. That means you own 10% of the company. Wow! But then that company decides, let's sell more shares of our company so we can get a bunch of cash, let's have 200 shares total. Now you, the owner of 10 shares, no longer own 10% of the company, you only own 5%. Your ownership of the company has shrunk dramatically, and the value of your shares has halved due to dilution.

Most investors here would feel like they're been taken advantage of by the company - the company has gotten a ton of cash by doubling their shares and investors are left holding shares worth only half (50%) of what they originally were worth.

So how about GRRR? To end 2023 they had 7.6 million outstanding shares. To end 2025? 26.2 million shares. A single share bought in 2023 is now only 29% as powerful as it originally was when it comes to owning the company. Most shareholders would consider GRRR to be taking massive advantage of their bag holders. This is why brokerages are trying to protect ignorant retail investors by restricting trading of this company (yet the bag holders are acting like there's a conspiracy against them 😭)

My advice? gtfo of this company, cut your losses, and let it be a lesson learned for all those investors who weren't aware of share dilution. Outstanding shares can be seen in a companies public financials, specifically under their Balance Sheet. The balance sheet also shares a companies liabilities and shareholder equity