Is Redbox Entertainment Stock a Buy Now?
Redbox Entertainment (NASDAQ: RDBX) went public by merging with a special purpose acquisition company (SPAC) last October. The video rental kiosk and streaming video service provider's shares closed at $11.90 on the first trading day, briefly touched an all-time high of $27.72 the following month, then plummeted to just $1.61 per share this February.
Redbox's stock plunged because its rental kiosks were becoming irrelevant, its streaming video business was still struggling, and its balance sheet was a mess. Those red flags made it an easy target for short-sellers as rising interest rates rattled the markets. However, Redbox's stock subsequently rebounded to about $7 as the short sellers overstayed their welcome. Let's see if its recent gains are sustainable -- and if its stock is worth buying.
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Source Fool.com
