Why Kodak Stock Is Soaring More Than 500% Today

What happened 

Shares of Eastman Kodak (NYSE: KODK) are skyrocketing again on Wednesday, following the technology company's incredible 203% gain on Tuesday. As of 10:40 a.m. EDT today, Kodak's stock was up a staggering 570%.

So what

Eastman Kodak shares surged on Tuesday after the company said it would receive a $765 million loan from the U.S. International Development Finance Corporation (DFC). It's the first such loan under the Defense Production Act (DPA) and an executive order issued by President Donald Trump, which authorizes the DFC to work with the Department of Defense to bolster the nation's response to COVID-19. 

A rapidly rising stock chart.

Eastman Kodak's stock has delivered torrid gains to investors in recent days. Image source: Getty Images.

Later on Tuesday, President Trump touted the deal as a way to strengthen the country's pharmaceutical manufacturing capabilities, particularly as they relate to the production of generic drugs. "Today's action is our latest step to build the greatest medical arsenal in history," Trump said. 

Now what

Prior to the announcement of its deal with the U.S. government, Kodak had a market capitalization of roughly $115 million. Today, its market cap is over $2 billion. Kodak's incredible gains highlight just how much of a game-changer some investors believe its new pharmaceutical initiatives can be for the company.

At this point, however, much of the upside to the deal is likely already priced into Kodak's shares.

10 stocks we like better than Eastman Kodak
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Eastman Kodak wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of June 2, 2020


Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More