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Data: FactSet; Chart: Axios Visuals

If stock trading is the new sports betting, then the best kind of stock to gamble with is a stock that's guaranteed to end up being wiped out entirely.

The big picture: Bankrupt companies like Hertz, Whiting Petroleum and JC Penney are great gambling vehicles for low-information bettors. Much like bitcoin, they have no intrinsic value; their share price is therefore simply a reflection of short-term flows and manias.

By the numbers: Hertz rose from 83 cents per share on the morning of June 4 to as much as $5.85 per share in the afternoon of June 8. Whiting Petroleum closed on June 4 at 85 cents; on June 8 it closed at $3.48. JC Penney rose from 21 cents per share on June 5 to 67 cents the following trading day.

  • The buyers were not making sophisticated bets that the equity of these companies might somehow have residual value post-bankruptcy. (It won't.)
  • Instead, they were playing a game of "how long can you hold on to a rising stock with a fundamental value of $0 before it crashes."

My thought bubble: Day trading bankrupt penny stocks is a bit like buying lottery tickets. So long as you know the risk involved, it can be a fun way to dream of riches while (ideally) leaving your long-term retirement investments untouched.

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Illustration: Sarah Grillo/Axios

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Exclusive: Trump declines to praise John Lewis, citing inauguration snub

President Trump dismissed the legacy of the late Rep. John Lewis in an interview with “Axios on HBO,” saying only that Lewis made a “big mistake” by not coming to his inauguration.

The big picture: Trump's comments were a glaring contrast with the praise Republicans and Democrats showered upon Lewis this week, and a default to personal grudges during a week of mourning for a civil rights hero.