What Happened?
Shares of pet products provider Bark (NYSE: BARK) jumped 3.1% in the afternoon session after the stock moved on what appeared to be technical trading activity.
The move came after the stock had experienced a period of decline, falling in 6 of the last 10 trading days for a total drop of about 8%. On the previous trading day, the price fell by over 2%. The stock also showed significant fluctuation, with a range of nearly 6% between its high and low points during that session. Given the lack of a clear catalyst, the day's price increase seemed to be a result of normal market volatility rather than a reaction to any specific company development.
After the initial pop the shares cooled down to $0.69, up 3.7% from previous close.
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What Is The Market Telling Us
Bark’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 9.5% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Bark is down 63.3% since the beginning of the year, and at $0.69 per share, it is trading 71.1% below its 52-week high of $2.40 from December 2024. Investors who bought $1,000 worth of Bark’s shares at the IPO in December 2020 would now be looking at an investment worth $55.89.
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