Why Revlon Stock Surged 31% Today
Shares of Revlon (NYSE: REV) the cosmetics company that filed for bankruptcy protection only two months ago, made a big move today, soaring 30.6% after Morgan Stanley (NYSE: MS) made a surprise investment in the company.
Revlon shares have surged over the two months since the company's filing, as meme stock traders like those on Reddit's WallStreetBets forum seem to hope they can pull the same trick they did with Hertz, the rental car company that filed for bankruptcy protection in 2020, shortly after the pandemic struck. Traders bid Hertz shares higher and eventually got a handsome payoff when the company was bought out by private equity firms in 2021.
Today, Revlon investors got a boost from news that Morgan Stanley, the investment banking giant, purchased around 400,000 shares of the beaten-down cosmetics stock during the second quarter.
Source Fool.com
