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This article originally appeared on Business Insider.
Spirit Airlines has become the latest meme stock in a wildly trading week for low-cost airlines.
The drama first unfolded last week when a court blocked JetBlue’s $3.8 billion bid to buy Spirit Airlines, citing competition concerns within the airline industry.
After the court ruling, Spirit Airlines’ stock price fell as much as 74% in three days as the company’s business was called into question.
Spirit Airlines stock fell to $4.04 on Thursday, driven in part by a retail trading frenzy similar to the rally in meme stocks seen during the 2020-2021 coronavirus pandemic. It is showing a rapid rise. , during which traders bought stocks in companies with questionable fundamentals.
Spirit Airlines stock has since risen 131% from Thursday’s low, hitting a high of $9.34 per share on Tuesday. JetBlue’s decision to appeal the court’s ruling helped boost the stock price and gave investors hope that a deal might eventually go through.
Cumulative volume has exploded over the past week, with over 512 million shares traded, and over 75 million shares traded on multiple trading days. For context, he has 109 million shares of Spirit Airlines outstanding, but his normal daily trading volume before the court ruling was just 3 million shares.
Amid the trading frenzy, online conversation about the stock has picked up steam, with social media platform StockTwits hitting a “very high” message volume on Tuesday, scoring 87 out of 100.
Spirit Airlines stock has also received attention from Barstool Sports founder Dave Portnoy, who has been buying the stock and posting videos on X over the past week commenting on recent stock price movements. did.
“$SAVE is fraudulent. We fly in this country!” he posted on x.
Despite the recent four-day rally, Spirit Airlines stock is still 42% below its price last week before the court ruling.
Market Insider
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