Shares of bankrupt Rite Aid plunge despite meme-stock chatter

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Shares of bankrupt Rite Aid plunge despite meme-stock chatter
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After halting on Monday, trading in Rite Aid’s stock resumed Tuesday

Trading in Rite Aid’s stock was halted premarket Monday after the company filed for chapter 11. Bonds issued by Rite Aid RAD also sold off heavily. The stock resumed trading Tuesday and was down 58.4%.

The platform also acknowledged the possibility that Rite Aid shares could plunge. “Many investors and traders are fearful of another potential plunge once trading resumes,” Stocktwits wrote in a newsletter Monday. “However, others are eyeing the situation given its ‘meme stock’ potential. Time will tell.”

Rapid Ratings pointed to its core health score, which evaluates medium-term sustainability based on operational efficiency and competitiveness, as well as its financial health rating, which measures short-term default risk.

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