Why Revlon Stock Jumped 32% Today
Revlon (NYSE: REV) shareholders beat a rising market on Tuesday as the stock gained 32% by 12:30 p.m. ET compared to a 2.3% surge in the S&P 500. The rally erased only some of investors' recent losses, though, and the struggling beauty products retailer remains lower by more than 50% so far in 2022.
The gain was powered by speculation that Revlon may emerge from its current bankruptcy process as a stronger company -- or attract an acquisition by a well-funded corporate suitor.
Revlon stock jumped on Friday due to speculation that a conglomerate called Reliance Industries is preparing to make an offer to purchase the business. Revlon said a day earlier that it has filed for Chapter 11 bankruptcy protection due to financial challenges including slowing growth and soaring costs.
Source Fool.com
