The debut trading session for GrabAGun (PEW), a Texas-based online firearms and ammunition retailer, began on a celebratory note. Donald Trump Jr., a high-profile board member, rang the opening bell at the New York Stock Exchange, drawing smiles and media attention. The company went public through a merger with Colombier Acquisition Corp. II (PSQH), a SPAC led by Republican donor Omeed Malik, raising $179 million in gross proceeds. But the upbeat start quickly faded as the stock dropped nearly 20% by the end of the day. After opening near $21, shares slid to an intraday low around $13 before closing at $17.33, down nearly 19%.
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Several Reasons for the Decline
Analysts cite several reasons for the sharp decline. First, GrabAGun has a 91% debt-to-asset ratio, a red flag for investors in today’s volatile market. Second, sentiment surrounding SPAC deals remains weak, with many recent listings struggling to maintain their value. Some traders also point to early profit-taking and limited institutional support as factors weighing on the price.
Political exposure is another concern. While Trump Jr.’s involvement may help GrabAGun attract a loyal customer base, it also increases scrutiny and adds risk, especially in a sector sensitive to regulation. Market watchers expect trading to stay choppy in the near term, with support possibly forming between $15 and $16. Some view the drop as a potential entry point, while others remain cautious due to the company’s high leverage and niche positioning.
GrabAGun, which sells firearms, ammunition, and accessories online, is now one of the most visible public companies in the gun retail space. Its early performance shows that strong branding and headline attention may boost visibility, but stock prices still respond to fundamentals.
Using TipRanks’ Comparison Tool, we’ve assembled and compared some of the publicly traded firearm and ammunition companies on Wall Street to gain an overall understanding of the industry.
