I'm not a finance guy, but should this equate to a big rebound in the stock price? It was trading at ~$130 a month ago, then significantly down in the last few days, and now it seems to be at ~$30 in pre-market.
It may rebound the price, but it doesn't mean it will big. The money will likely be used for helping out with cash flow and surviving the next months, until the bank is out of the red zone.
A stock price is representative of the value of expected future earnings. $30 may just already price in those. Since the stock didn't go to zero, it means agents on the market still expect the company to survive and operate at a profit in the future.
It's currently -13% pre-market, so the news definitely doesn't seem to be driving it up wildly though I wouldn't be surprised if at least some of that 13% is regained once the market opens (but that 13% is just the difference between 29.72 and 34.27 - it would then just need a little 280% increase to get back to $130!)
If you’re waiting for a dip at lows, it probably won’t come. Back in November when the stock market bottomed people constantly spread fear that we’d see even lower lows by this time of year. Except we haven’t, and even despite the bank worries the S&P 500 is still holding onto the 4000 line.
The news hit yesterday and got them +10% before close but it seems pre-market they are down currently -23%. Doesn't look like there is much reason to rebound to anywhere their previous levels in the short term.
