Yahoo Finance Live anchors discuss how Enjoy Technology shares are trading after filing for bankruptcy.
BRIAN SOZZI: And last but not least here-- and this is a name I really pushed for, Brad. I pushed to have it in this section. This is Enjoy Technologies. This is a ticker that has been hot, hot, hot on our platform the past 48 hours. It's now a $0.50 stock. And it essentially is hot because Enjoy filed bankruptcy last week.
And this is a company founded by former retail-- Apple retail wizard, Ron Johnson. Went public at a $1.1 billion valuation. Now a bankrupt company looking to get a bailout or a buyout, I should say, from Asurion at some point this week. That is according to the FT earlier in the week on this one. But, you know, I wanted to mention this almost as a real-time Yahoo you.
To anyone out there trying or trading a name like Enjoy, a bankrupt company, this is the action that I typically saw when Sears went bankrupt many years ago. You saw a lot of speculation in Sears despite the stock, despite the company being bankrupt and the stock still being traded for a period of time. Look, Enjoy, realistically, will probably be delisted.
And you're seeing, I think, just a lot of speculation in this name. You don't want to be caught up in the speculation of a company that is essentially bankrupt here. So be very careful. But, again, this is one of the hottest tickers in our platform right now.
BRAD SMITH: Yeah, and I think it's fair to add on to here that Enjoy is no Hertz. When we saw the bankruptcy proceedings for Hertz, it was a different class of company, a different style of business as well. And one that you assumed, when travel came back, that Hertz would be able to somehow get itself out of that bankruptcy, and that it was a proceeding in order for them to kind of shield themselves just to get through to the other side. Enjoy, far different.
And for what we've seen in the SPAC market for some of the companies that have been able to be part of a de-SPAC, there has been weakness in the water. And there's certainly holes in their flotation devices in this particular bear market that we have been watching. And so for a lot of the SPAC names that have seen the wind sucked out of their sails, it's a larger question of, what kind of company-- if they're to outlast a recession, what kind of company will they look like on the other side? And on what customer base as well?
BRIAN SOZZI: Yeah, like I like your Hertz comparison, Brad. I think it's right on. At the end of the day, Hertz is a real company. Decades of being in business. And that just needed to go through a more classic restructuring process in bankruptcy. And then the company could emerge with less debt and continue to be a real company.
There was always questions around the Enjoy business model, Brad. I remember talking to the company when they went public. And you still got the sense, well, can they make this model work? And if they do, how big is this market? And, again, all of this is playing right now. Enjoy is a bankrupt. So, again, if you're trading this name, be very careful. At some point, it will be-- be a delisted stock.