Dave & Buster’s (NASDAQ: PLAY) has its share of headwinds, but not to the degree its stock price action suggests. The mid-September plunge, triggered by weaker-than-expected Q2 results, pushed the stock to a record low, well below existing support and on track for what could be a monumental slide.
But the panic-selling and heavy volume behind the move have the hallmarks of market capitulation—the point at which investors give up hope and sell en masse, often marking the bottom of a downtrend rather than the start of a new one.
