Foot Locker (FL) Stock Soars 70% to $22 on Surprise Buyout by Dick’s
Foot Locker's shares experienced a sharp increase in after-hours trading on Wednesday as investors processed an unexpected acquisition that
Quick overview
- Foot Locker shares surged 65% in after-hours trading following a surprise acquisition by Dick's Sporting Goods, valuing the company at $24 per share.
- The acquisition has sparked a potential trend reversal for Foot Locker, which had been trading below key moving averages for months.
- CoreWeave reported a staggering 420% year-over-year revenue growth, but its stock fell sharply after revealing a widening net loss of $149.6 million.
- Despite the pullback, CoreWeave's CEO expressed confidence in the company's long-term growth, supported by a substantial revenue backlog and strategic partnerships.
Foot Locker’s shares experienced a sharp increase in after-hours trading on Wednesday as investors processed an unexpected acquisition that altered the picture.
Foot Locker Soars 70% After Surprise Buyout by Dick’s Sporting Goods
Foot Locker shares skyrocketed by 65% in after-hours trading after reports emerged that Dick’s Sporting Goods had finalized a deal to acquire its longtime competitor. The transaction values Foot Locker at $24 per share, nearly double its Wednesday closing price of $12.87, representing a 100% premium.
However, the after-hours rally has already brought the stock within touching distance of the deal price, suggesting that much of the arbitrage opportunity has now been priced in. For Foot Locker, this marks a dramatic reversal from its long-term bearish trend.
Foot Locker FL Chart Daily – A Bullish Gap Above MAs Tomorrow
For months, the stock has been trading below key moving averages, which acted as overhead resistance. The 20 SMA (gray) has been the ultimate resistance indicator for CRWV share price, however in the last month we have seen some attempt to stop the decline, as the price increased and consolidated above the 20 daily SMA.
However, the 50 SMA (yellow) was acting as resistance this week, rejecting the price. However, the gap-up expected at tomorrow’s open will send the stock above those levels, potentially signaling the start of a technical trend reversal from bearish to bullish.
Meanwhile, Dick’s Sporting Goods saw its own shares fall by approximately 5% in after-hours trading, likely due to investor caution over the costs and risks of the acquisition. While strategic in nature, such deals often come with near-term dilution concerns.
Conclusion: Bullish Gaps and Growing Pains
Wednesday’s after-hours session highlighted the contrasting narratives in today’s equity market. Foot Locker’s acquisition ignited excitement and offered technical traders a potential trend reversal setup. As the market opens tomorrow, both names will be closely watched—one for its strategic transformation, the other for its ability to sustain meteoric growth without buckling under the cost.
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