Has a stock ever been worth a lot, then worth nothing the next day?

[Grant]

The stock market is a weird one to me. One day something can be up high in price, and the next it falls. What happens if something in the stock market just drops down to next to nothing in worth? What happens in those cases? Does the stock ever rebound? I don't know a whole lot on stocks, but I imagine if a stock rises to a big amount, and then drops, it's not good for that company right? Has a stock ever just blown up because of this?

 

[Riberet19]

Yes, of course, you only need to go back to 2008 when the economic crisis began because of the Lehman brothers, in a matter of a few days I think it lost all its value, many companies have lost all their value in the stock market but it is difficult to lose it so suddenly, here I leave the graph of Lehman brothers.

 

[Monster Masterpiece]

@riberet19 the past could redo himself on the present so nothing prevents from what happening on 2008 to be happened nowadays on 2023 so this scenario is for propable.

 

[Nomad]

This occurs when there is short selling. Whales like to invest in stocks and when the price goes up due to their buying activities, they start dumpling. The value of stock will go terribly down and will worth nothing.