Tupperware Brands stock is surging: Learn from GME and avoid

August 01, 2023 06:00 AM AEST | By Invezz

Tupperware Brands stock is surging: Learn from GME and avoid — Image source: Invezz

Memories of GameStop

Tupperware Brands is a well-known company that manufactures and sells household items. It has been in the business for more than 75 years, making it one of the top brands in the United States.

Recently, however, the company has gone through a tough period amid rising competition and the popularity of e-commerce. Tupperware Brands also lost its shine because of falling advertising budgets in the past few decades.

As a result, its revenue have been in a downward trend. It brought in over $1.3 billion in 2022 down from $1.6 billion in 2021 and $2 billion in 2018. Its annual profit came in at just $14 million.

Tupperware Brands stock price has surged in the past few days as it became popular among day traders. Its surge mirrors that of other troubled companies like Bed Bath & Beyond and GameStop during the meme stop.

For one, the rally is happening at a time when the company has not made news recently. The most recent news happened in April when the firm expressed going concern issues. It also hired advisors as it explored strategic alternatives.

Therefore, I believe that buying Tupperware Brands stock, for now, is a bit risky since such surges don’t end well. For example, Bed Bath & Beyond has already filed for bankruptcy while most meme stocks have plunged by more than 80% from their peak.

A likely reason why the TUP stock price will retreat is that the company will likely take advantage of the surge to dilute its investors.

Tupperware Brands stock price forecast

The 4H chart shows that the TUP share price has made a spectacular comeback in the past few weeks. Along the way, the shares have managed to move above the 50-day and 25-day moving averages.

The Stochastic Oscillator and the Relative Strength Index (RSI) have moved to the overbought level. Therefore, the shares will likely retreat in the coming days as the bullish momentum fades. If this happens, the stock will likely drop to the next support level at $3.

The post Tupperware Brands stock is surging: Learn from GME and avoid appeared first on Invezz.

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