Why Veon Stock Jumped 33% Today
Veon (NASDAQ: VEON) stock beat the market by a wide margin on Wednesday, with shares rising 33% by 3:15 p.m. ET compared to a 2% spike for the S&P 500. The communications services provider, which does business in and around Russia, issued an update on its debt position that calmed fears of an imminent liquidity squeeze.
Management said in a press release that Veon has paid off over $400 million of debt that was due in early March. The company isn't in a dire financial pinch today, either, despite wild swings in the Russian ruble and a sharp economic contraction in a few key markets.
In fact, Veon has access to plenty of cash holdings that aren't denominated in rubles, management said. These resources "will allow us to maintain a prudent liquidity position in these times of macroeconomic uncertainty," CFO Serkan Okandan said.
Source Fool.com
