Diginex is experiencing a severe market downturn, with its stock price collapsing under intense selling pressure. The dramatic decline follows a series of double-digit percentage losses over just a few trading sessions, as investors deliver a harsh verdict on management’s aggressive acquisition strategy. Market sentiment has turned decisively negative toward the equity.
Acquisition Spree Tests Investor Patience
The recent sell-off gained momentum on November 6 when Diginex signed a non-binding letter of intent to acquire Kindred OS, a specialist in Edge AI technology. Rather than generating excitement, this move into the artificial intelligence sector has been met with skepticism. Market participants are questioning the feasibility of the company’s ambitious plans and showing clear disapproval of the strategic direction.
Investor patience appears exhausted following numerous acquisition announcements. The market increasingly perceives Diginex’s M&A approach as carrying unpredictable risks, with this sentiment directly impacting the share price.
Major Deal Remains Uncertain
Compounding the uncertainty, the massive Resulticks acquisition valued at approximately $2 billion, initially announced in June, remains in limbo. Although the due diligence period was extended through October 31, a final agreement has yet to materialize. This prolonged uncertainty fuels significant doubts about whether this transformative transaction will ultimately proceed.
Should investors sell immediately? Or is it worth buying Diginex?
Key developments driving current market sentiment:
- Completion of Matter DK ApS ESG acquisition in October
- Double-digit percentage share price decline within days
- Pending Resulticks takeover decision ($2 billion valuation)
- Letter of intent signed for Edge AI firm Kindred OS
Historic Rally Meets Severe Correction
The current downturn appears particularly stark when contrasted with the stock’s previous performance. Since its market debut on January 22, 2025, at $4.10, Diginex shares skyrocketed to approximately $39.85 – representing an astonishing 872 percent gain. The present downward movement constitutes a severe correction following this historic rally.
Whether Diginex can restore market confidence remains uncertain. The coming weeks will prove critical, particularly regarding the outcome of the pending Resulticks transaction.
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