Why Oasis Petroleum Stock Took a Wild Ride Today
Shares of U.S. energy company Oasis Petroleum (NYSE: OAS) rocketed over 40% at the open of trading on Friday. Over the next half-hour, the stock gave back most of that advance, hovering at around a 15% gain by 10 a.m. EDT. Shortly after, it was near a loss of 13%. Then the price briefly entered positive territory before slipping into a single-digit decline on the day. And it wasn't even noon yet! That's a heck of a ride, but it shouldn't be too surprising.
Over the past year, Oasis' stock has lost 90% of its value. This year alone, it is down around 80%. Its market cap has fallen from roughly $2 billion a year ago to around $200 million today. Oasis is a penny stock, with a price below $1 per share, and it is asking shareholders to approve a reverse stock split so it can avoid being delisted by the New York Stock Exchange.
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Source Fool.com
