Should You Invest in Revlon Stock Right Now?
Revlon (NYSE: REV) is the latest company to file for Chapter 11 bankruptcy protection, only to see its stock price spike. Though shares have tanked this week, they're still up nearly 400% since June 13. The same phenomenon occurred in 2020 when retail investors rushed to invest in big names like Hertz (NASDAQ: HTZ) and JCPenney after they filed for bankruptcy.
At least some of Revlon's surge has been driven by meme stock enthusiasts in forums like Reddit's WallStreetBets. Investors may also be drawn to the opportunity to buy stock in an iconic brand like Revlon at dirt-cheap prices. But the reality of buying stock in a bankrupt company isn't pretty.
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Source Fool.com
