Express stock drops by 80% and gets delisted, 2 months after our sell Signal

April 24, 1:49 pm

On February 4th, Express Inc. was trading at $5 per share when we issued a sell signal to our AltIndex.com members. This alert was based on distinctive insights from alternative data, which showed subtle yet concerning trends not evident in traditional financial metrics.

What the Data Showed

Our analysis brought several critical indicators to light, suggesting that Express was heading towards a downturn:

Social Media Trends: There was a significant dip in followers on platforms like Twitter and Instagram, enough to raise alarms about decreasing consumer interest.

Hiring Patterns: The reduction in open job positions indicated that Express was possibly cutting back, a typical indicator of financial distress.

Employee Sentiment: The business outlook among employees dropped by 14% from the previous year, signaling internal concerns about the company’s future.

Express Business Outlook according to employee reviews

The Outcome

After our sell signal, the stock price of Express fell to $0.7 per share, leading to its delisting. Subsequently, Express filed for Chapter 11 bankruptcy and began closing several stores.

Why This Matters

This case highlights the critical role of alternative data in investment decision-making. While essential, traditional financial statements often overlook underlying trends that alternative data can uncover, providing early warnings and deeper insights. Investors who jumped on this sell signal made significant returns on a short position.

Looking Ahead

For investors, integrating alternative data into your strategy is vital. It reveals hidden risks and opportunities that are not apparent through standard financial analysis. At AltIndex.com, we leverage this data to equip our members with the knowledge to make timely, informed investment decisions.

Join us for ongoing updates and insights, ensuring you have an edge in the stock market.

Disclaimer: The information provided by AltIndex is solely for informational purposes and not a substitute for professional financial advice. Past performance doesn't guarantee future results.

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