Why SmileDirectClub Stock Just Popped 17%
SmileDirectClub (NASDAQ: SDC) shareholders are grinning today as they watch their stock soar 17% -- as of 12:25 p.m. EST -- on news that the supplier of "direct" to consumer teeth-straighteners will now enter the wholesale market as well.
Yesterday, SmileDirect announced that "with the December 31, 2019 expiration of its exclusive supply agreement with Align Technology (NASDAQ: ALGN)," it's now free to invade the wholesale market and begin selling to Align's own primary customers. Previously, Align made the corrective plastic "aligners" for SmileDirect, which was in turn "obligated to stay in the direct-to-consumer channel" and not sell to dentists or orthodontists.
Image source: Getty Images.
Source Fool.com
