Why Hostess Brands Stock Suddenly Skyrocketed on Friday
After Hostess Brands (NASDAQ: TWNK) went bankrupt in 2012, Apollo Global Management and Metropoulos were able to buy its snack cake division -- which includes Twinkies and Ding Dongs -- for $410 million. There were no other bidders at the time. But now a decade later, appetite for these tasty assets may have improved.
Hostess Brands stock suddenly skyrocketed at around 2:30 p.m. ET on Friday, after Reuters reported that the company was exploring a sale. As of 3 p.m. ET, Hostess Brands stock was up 26% and getting close to an all-time high.
On one hand, investors could say that Hostess Brands' business is healthy. The company's net revenue was up almost 4% year over year in the first half of 2023, and management is guiding for comparable growth for the entire year. Profits are also up.
Source Fool.com
