Dollar Tree Stock Plunges 18% After Flash Crash Drops the Stock
Dollar Tree (Stock Symbol: DLTR) discount retailer that sells everything for $1 or less, suffered a mini “Flash Crash” in the first two seconds after the open on Thursday August 16, 2012.
The stock plunged 18 percent before snapping back to more normal levels less than two seconds later — that’s definitely the machines or somebody had a fat finger.
This kind of stuff is going to be ongoing because the machines are contributing the only margin that’s really left in the broker-dealer community. You saw this issue with Knight Capital — this type of “Flash Crash Glitch” will happen again.
Dollar Tree had warned earlier that its third-quarter results would miss analyst expectations. The retailer expects earnings of of 47 cents to 51 cents a share on revenues of $1.71 billion to $1.75 billion for the current quarter. Analysts on average forecast earnings of 52 cents a share on sales of $1.77 billion.
For the second quarter, Dollar Tree met analyst expectations with earnings of 51 cents a share, up from 39 cents a share a year earlier. Sales rose 10.5 percent to $1.70 billion, while same-store sales climbed 4.5 percent, down from a 4.7 percent increase a year earlier.
Tags: Broker Dealer Community, DLTR, Dollar Tree, Dollar Tree Stock, Dollar Tree Store, Dollar Tree Ticker Symbol DLTR, Fat Finger, Flash Crash, Flash Crash Glitch, Knight Capital, Mini Flash Crash, Miss Analyst Expectations