Shares of Eastman Kodak (KODK 8.33%) 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%.
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.
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.
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.