Spirit Airlines has become the latest meme stock in a volatile week of trading for the low-cost airline. The drama began when a court blocked JetBlue's proposed takeover of Spirit Airlines due to concerns about competition within the industry. This caused Spirit Airlines' stock to plummet by as much as 74% over three days, as the deal was thrown into doubt.
However, the stock has experienced a rapid rally since then, driven in part by a retail trading frenzy similar to the meme-stock rallies seen during the COVID-19 pandemic. Shares of Spirit Airlines have rallied by as much as 131% from their low on Thursday, reaching a high of $9.34 per share on Tuesday. This surge was further fueled by JetBlue's decision to file an appeal to the court ruling, giving hope to investors that the deal might still go through.
The trading volume for Spirit Airlines has exploded over the past week, with over 512 million shares traded. This is a significant increase compared to its typical daily volume of just 3 million shares. Online chatter about the stock has also intensified, with the social media platform StockTwits registering an "extremely high" message volume on Tuesday.
Barstool Sports founder Dave Portnoy has also drawn attention to Spirit Airlines stock, purchasing shares and posting videos discussing the recent volatility. Despite the four-day rally, the stock is still 42% below its price before the court decision.
Overall, Spirit Airlines' stock has experienced a rollercoaster ride due to the court's decision on the JetBlue merger and subsequent appeal. The retail trading frenzy and social media attention have contributed to the stock's rally, but it remains to be seen how the situation will unfold in the coming days.