Lordstown Motors Shares Fall After Company Says It’s Running Out of Cash and Wendy’s Shares Rise as Retail Traders Feed Meme-Stock Frenzy 🍔

Lordstown Motors Shares Fall After Company Says It’s Running Out of Cash and Wendy’s Shares Rise as Retail Traders Feed Meme-Stock Frenzy

Lordstown Motors

On Tuesday, shares of Lordstown Motors tanked, closing down 16.27%.

Shares of the American electric vehicle automaker fell after the company announced it is running out of cash.

Lordstown is working on an electric pickup named the Endurance, with manufacturing set to begin this year. In a filing Tuesday, Lordstown Motors said, “The Company believes that our current level of cash and cash equivalents are not sufficient to fund commercial-scale production and the launch . These conditions raise substantial doubt regarding our ability to continue as a going concern for a period of at least one year from the date of issuance of the consolidated financial statements included in this report.”

Lordstown is one of a slew of electric vehicle manufacturers that have gone public in the last year thanks to a merger with a special purpose acquisition company, or SPAC. However, creating and developing a car is costly, and as the number of EVs on the market rises, the firm may find it more challenging to raise funds.

Shares of Lordstown Motors have fallen over 40% this year.

Wendy’s   

On Tuesday, shares of Wendy’s jumped, closing up 25.85%.

Shares of the American fast-food chain rose as retail investors dumped their money into “meme-stocks.”

While no one knows with absolute certainty, most investors attributed Wendy’s stock rise to the meme-stock frenzy, which has expanded beyond its original targets of companies like AMC Entertainment and GameStop. Investors who are following the meme-stock trend are looking for new ideas and new companies to profit from. Some ambitious investors believe the American fast-food chain has more upside, despite the stock being at 17-year highs.

Shares of Wendy’s have risen over 30% this year.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

What is a kids brokerage account?

23 March, 2023

A kid’s brokerage account is more accurately called a custodial account. This is a brokerage account that parents or legal guardians can open on behalf of their child.

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.