As The Motley Fool reported last week, Dave & Buster’s stock was surging as locations began to reopen around the country. At one point, shares had been trading at 24% higher.
“The reopening is far ahead of Wall Street’s timetable when fear ran high in March,” the article said. “Maybe this, too, contributes to Dave & Buster’s stock gains. Consider that short interest in this stock – people betting against it – increased throughout March and April, according to data available from Nasdaq. … But now that Dave & Buster’s is reopening, many are rethinking those short positions.”
D&B had fell around 90% earlier this year, and worst-case scenarios included bankruptcy as the company “struggled with liquidity as its revenue completely evaporated overnight.” Q1 results will be available in a company report on June 11.