Nasdaq-listed STAK Inc. STAK stock fell 31.63% to about $3.48 as the AI data-centre power rally reversed and small-cap liquidity risk intensified.

Key Highlights

  • Shares dropped 31.63% to approximately $3.48 after closing the previous session at $5.09.
  • Two-session losses reached about 40% following the earlier 12.69% decline.
  • The stock is now roughly 63% below its June 12 high of $9.50.
  • First-half revenue rose 13.41% to $19.2 million, but gross margin and earnings declined.

STAK Gives Back More of Its AI-Linked Rally

STAK Inc. (NASDAQ:STAK) traded near $3.48 during today’s trading session, falling $1.61 from its previous close of $5.09. The shares opened at $5.14 and moved between $3.02 and $5.30 as selling accelerated after the start of regular trading.

The decline followed a 12.69% loss in the preceding session. Across the two sessions, STAK has fallen approximately 40% from its estimated price before the initial selloff.

Trading volume approached 593,000 shares in the latest displayed data, below the stock’s recent daily average. The combination of a large percentage decline and relatively limited turnover illustrates how quickly pricing can change in a company with a small public market value and concentrated trading activity.

STAK reached a 52-week high of $9.50 on June 12, shortly after announcing plans to enter the US distributed-power market. At the current price, the shares have surrendered roughly 63% of their value from that high, although they remain well above the February low of $0.29.

No newer material company filing was identified after the June 8 announcement concerning the proposed US power subsidiary. The scale of today’s drop therefore appears to reflect a continued unwinding of the earlier AI-related rally rather than a newly disclosed operating event. The broader session also included heavy selling in technology and AI-linked stocks, adding pressure to speculative companies associated with data-centre infrastructure.

Proposed US Power Business Remains at the MOU Stage

STAK announced on June 8 that it had entered into a memorandum of understanding to form a majority-owned US subsidiary focused on modular gas-to-electricity generation systems.

The proposed business would target AI data centres and other energy-intensive users across North America. STAK expects to hold a 60% interest, with the entity incorporated in Delaware and operating through a Texas subsidiary.

Each modular unit is designed to provide as much as 1.4 megawatts of electrical output from an ISO-compliant container. The equipment would be compatible with natural gas and associated gas and could be combined into larger installations serving commercial sites or data-centre campuses.

However, the subsidiary has not yet reached full commercial status. Its formation remains dependent on definitive agreements and customary closing conditions. Deployment would also require federal and state environmental approvals where applicable.

These conditions help explain the difference between the size of the earlier share-price rally and the amount of confirmed operating information. The announcement expanded STAK’s addressable market, but it did not include customer contracts, committed revenue, project financing or a completed deployment timetable.

The present selloff may therefore represent a reassessment of how much value should be assigned to an initiative that remains at an early contractual and regulatory stage.

Core Oilfield Revenue Grew, but Margins Contracted

STAK’s established business manufactures specialised vehicles, production equipment and maintenance systems for oilfield operators in China. It also supplies components and automation services connected with oilfield operations.

For the six months ended December 2025, revenue increased 13.41% to $19.2 million. The improvement was driven by higher order volumes and selling prices for specialised oilfield vehicles, partly offset by weaker demand for certain equipment products.

Cost of revenue increased nearly 19% to approximately $14 million. Gross profit remained near $5.2 million, but gross margin declined to 27.24% from 30.65%.

The company attributed the lower margin to production costs for newly developed vehicles and promotional pricing used to expand market share. Net income declined to approximately $1.8 million from $2 million, while earnings per share fell to $0.14 from $0.20.

The results show a business generating revenue growth and accounting profits, but not at improving unit economics. That distinction matters as STAK considers adding a US operation that may require product certification, sales infrastructure and additional working capital before generating meaningful revenue.

Cash, Inventory and Borrowings Shape the Expansion Capacity

STAK reported approximately $1.9 million in cash at the end of December, up from about $1 million six months earlier. Operating activities generated roughly $667,000 during the period.

The balance sheet was heavily weighted towards inventory, which reached $18.3 million. Short-term borrowings increased to approximately $7.6 million from $5.6 million, while total current liabilities stood near $14 million.

This structure means the company has substantial operating assets, but a more limited immediate cash position. Establishing and commercialising the proposed US power subsidiary may require external financing, partner contributions or a gradual deployment model if the initiative progresses.

Earlier Financing Adds Future Dilution Considerations

In January, STAK offered six million units at $0.38 each, with every unit containing one Class A share and one and a half warrants. The transaction was expected to provide approximately $2.2 million in net proceeds.

The offering included warrants covering as many as nine million additional Class A shares at an initial exercise price of $0.46. Those warrants are generally not scheduled to become exercisable until the second anniversary of issuance, making them a future rather than immediate source of potential dilution.

STAK also has a dual-class ownership structure. Only the Class A shares trade publicly, while the Class B shares carry substantially greater voting rights. The arrangement allows control to remain concentrated even as additional publicly traded shares are issued.

What Could Shape STAK Stock Next

The next significant development may be the execution of definitive agreements for the proposed US subsidiary. Details on funding commitments, ownership terms, regulatory applications, customers and initial deployments would provide a clearer basis for assessing the AI power strategy.

Future financial disclosures may also show whether oilfield vehicle growth can continue without further margin compression. Inventory conversion, short-term borrowing and cash generation will remain relevant if the company directs capital towards US expansion.

For today’s trading session, the confirmed development is a 31.63% decline to approximately $3.48. The fall extends STAK’s two-session loss to about 40% as the market reassesses an early-stage AI power initiative, a volatile share structure and the financial capacity required to commercialise the proposed expansion.