Why Is Eastman Kodak (KODK) Stock Up Today?
One of the more interesting meme stocks investors have been following over the past year is Eastman Kodak (NYSE:KODK). Today, KODK stock has absolutely rocketed higher, soaring more than 30% at the time of writing.
This move follows a few days of impressive buying activity for the stock. From Tuesday morning to today, KODK has appreciated roughly 50%. That’s quite the gain for any stock in the space of less than a week.
Of course, Kodak’s impressive earnings this morning have been one of the drivers behind the move. For this past fiscal year, it reported revenue growth of 12% on a year-over-year (YOY) basis. Additionally, operating EBITDA moved into positive territory, up to $11 million from a loss of $1 million in the prior-year period.
Accordingly, investors now appear to be trying to value KODK stock by its fundamentals. However, there’s a company-specific growth driver creating a lot of buzz here as well. Let’s dive into what investors are watching with Kodak right now.
KODK Stock Soars on Earnings, Key Announcement
In addition to today’s earnings, it appears investors are pricing in yet another catalyst for this beaten-down former superstar stock. Specifically, yesterday brought an announcement that IMAX (NYSE:IMAX) will be developing a “new fleet of next generation cameras” in partnership with Kodak, among other companies. That news has investors excited.
Expectations are that at least four state-of-the-art cameras will be developed for use by late 2023. These cameras are currently in the specification and prototype development phase. However, the hope is that IMAX will be able to increase its offering to filmmakers, with Kodak being a key partner.
Sure, the days of the old disposable camera are over. But new camera technology is something investors can get excited about with KODK stock today.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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