Shares of airline company Spirit Airlines, Inc. (NYSE:SAVE) were increasingly volatile on Thursday, hitting new 52-week lows after rumors of restructuring options being explored.
One well-known internet and sports personality bought shares of the struggling airline company, only to see an immediate drop in the investment. Here’s the story of Thursday’s wild ride.
What Happened: Shares of Spirit Airlines tumbled this week on news that a federal judge blocked the planned acquisition of the company by JetBlue Airways Corporation (NASDAQ:JBLU). The drop didn’t scare away one trader.
Best known as the founder of Barstool Sports, which was recently re-acquired from PENN Entertainment (NASDAQ:PENN), Dave Portnoy has also come to be known for his stock and cryptocurrency trading in recent years.
On Thursday, Portnoy announced in a tweet and a blog post that he had bought “a ton of Spirit Airlines stock.”
Portnoy recalled being a “huge Spirit Airlines guy” back during his Davey Daytrader days of day trading stocks.
“Right when I went all in on Spirit at 7 bucks everybody’s favorite grandpa Warren Buffett announced he was selling all his stock in all the airlines,” Portnoy wrote.
Portnoy recalled Spirit stock later skyrocketing into the $20s and compared the battle with Buffett as one of a young Larry Holmes defeating a “well past their prime” Muhammad Ali.
The sports personality wrote that he was struggling to believe that if the only choices for Spirit were to merge with JetBlue or file bankruptcy, that a judge would block the deal from going through.
“Like it would seem to me that if Spirit goes out of business than the very Poors that government is trying to protect would no longer be able to fly on Spirit anyway since they’d be belly up. I just fundamentally don’t understand how in any capitalistic society a judge can block a merger between 2 companies when 1 of them is in dire straits.”
Portnoy said that the ruling from the court could be appealed or overturned or the government could bail the company out given the importance of the airlines’ existance.
“They can’t just let them go out of business either right? Or am I making too much sense? Either way I’m all in…”
Related Link: Dave Portnoy Welcomes Back Full Ownership Of Barstool Sports, Calls Penn-ESPN Deal Win-Win: ‘I Am Never Going…
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