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Tupperware extends its rally on the stock market and shoots up more than 700% in two weeks

Date: June 14, 2024 Time: 19:10:21

Tupperware Brands extends to this Tuesday’s session the surprising rally that has led to a revaluation of more than 700% in a little less than a couple of weeks to the shares of the American company that markets containers for the preservation and storage of food. In this way, the Tupperware titles traded after the middle of the session with a rise of more than 31% to trade above 5.60 dollars when on July 21 they had fallen to 0.67 dollars, which implies a revaluation of the 780%.

The as unexpected as meteoric rebound of Tupperware shares occurs after the company received a notice from the New York Stock Exchange at the beginning of June about the continuity of the negotiation of its titles for not complying with the rules for listed companies on Wall Street after its average capitalization over a consecutive 30-session period was less than $50 million.

Possible speculative moves

At the same time, the New York Stock Exchange manager advised the company that the average closing price of Tupperware’s common shares was less than $1 over a period of 30 consecutive business days. In this sense, various analysts warn that behind the vertiginous escalation of the company’s shares there may be speculative movements such as those that in January 2021 encouraged the fever of ‘meme shares’ such as GameStop or AMC.

As was the case in 2021 with ‘meme shares’, it appears that Tupperware stocks have captured the interest of retail investors, with both option activity and retail trading increasing, according to ‘The Wall Street Journal’, citing data from Cboe Global Markets and Vanda Research. In this context, another possible explanation for the ‘rally’ would be a short squeeze triggered by the sharp rebound in Tupperware shares and forcing bearish positions on the stock to be closed hastily.

Short investors, who take short positions on certain stocks and profit when the price of those stocks fall, had turned their attention to Tupperware after the company even admitted last April that it had “substantial doubt” about it. its ability to continue as a going concern due to its financial situation.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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