Shares of Comstock Resources (NYSE: CRK) , a U.S. exploration and production company with a heavy focus on natural gas , saw its shares swoon nearly 12.5% in early trading Tuesday. There was no company news today, but a business update after the close on Monday could have been a factor here, as well as the broadly weak market open and today's early drop in the price of natural gas.
The S&P 500 index , after staging an incredible comeback yesterday, opened sharply lower this morning. So investors were in something of a dour mood. Now add in the fact that natural gas prices were lower this morning, too, while oil rose, and you can see why investors might have preferred to avoid Comstock. Note that natural gas made up roughly 95% of the energy company's revenue through the first nine months of 2021. Alone, these two factors could have easily led to an early drop.
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Why Comstock Resources Stock Plunged Over 12% at the Open Today