A Judgement-Free Zone About Price Undercutting

BusinessDictionary.com defines "Price Undercutting" as: 

To offer a good or service at a price that is deliberately set below the price charged by the competitor(s).

Planet Fitness boats of charging as little as $10 per month to work out at its gym franchise, clearly well below most gyms these days, especially with the rise of specialized exercise classes. We will not be passing judgement about PLNT arguably undercutting its competitors, however. 

Instead, we will focus on the action in the publicly-traded stock after its IPO last year. 

As you can see on the daily chart, below, PLNT is surging back today on strong buy volume--The strongest buy volume it has seen since it became public, actually--and is now threatening to cement its post-IPO long bathtub bottom base breakout to the upside. 

The reason why PLNT plunged yesterday was due to a dilutive share offering. However, to see the stock snapback immediately today is typically a bullish sign that the stock "absorbed" the secondary well. 

In light of the TWLO IPO today, PLNT is likely worthy of attention going forward, especially if the stock can hold over $19 this time around.