MS - Why Waitr Holdings Stock Sank Today
Shares of on-demand food delivery service Waitr Holdings (NASDAQ: WTRH) are tanking today, but unless they bought the stock yesterday, shareholders probably don't mind much. That's because it is up more than 130% over the past two weeks. Today, though, shares dropped as much as 16% at session lows. As of 1:15 p.m. EDT, Waitr Holdings shares were still down 11%.
Sometimes it's hard to know why investors bid up a small company like Waitr Holdings. It only had about $100 million in revenue for the first six months of 2021, while incurring a net loss of more than $9 million. In this case, though, the catalyst was obvious. On Oct. 12, Morgan Stanley (NYSE: MS) disclosed a more than 10% stake in Waitr in a Securities and Exchange Commission (SEC) filing. The stock has been on a tear ever since, until today.
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Why Waitr Holdings Stock Sank Today