From a mining company to a mortgage REIT, day traders have been flocking to new meme stocks all week and driving more eye-popping gains
Retail tradersare flocking to new meme stocks.
- Among the names are Cleveland Cliffs,
Clean Energy Fuels, ContextLogic, and Invesco Mortgage.
- The new names have a lower short interest rate than
Retail traders have been flocking to a horde of new meme stocks this week - from a mining company to a fast-food chain and a car retailer.The stocks, from a wide variety of sectors, don't have much in common, except that they're seeing increased social media hype and price volatility. Even their short-interest rates - a coveted metric that Reddit traders use to determine if a stock is primed for a short squeeze - vary considerably.
Even so, the company has had a volatile 24 hours. It closed Wednesday 31.5% higher only to fall in Thursday trading.It isn't the only new meme stock this week to whipsaw from big gains to losses.
ContextLogic, a mobile e-commerce company, surged Tuesday, erased some gains Wednesday and turned back upward Thursday. Quiver Quantitative listed the company as the most-discussed ticker on June 9 on Reddit with nearly 4,000 mentions. By comparison, meme-stock classic
One Redditor with a long comment history advised others, "Cut your losses and get out."Positive social volume about Invesco Mortgage, a Nebraska-based real estate investment trust, took off on Reddit this week, too, as the stock rallied 17.8% Wednesday and continued to build on its gains Thursday.
Little-known UWM Holdings, the Pontiac, Michigan-based mortgage lender, saw about 1,000 mentions on Reddit, Quiver Quantitative data showed. Redditors have pointed out the opportunity for a short-squeeze in the stock in the past, as it has a 21% short interest rate, according to MarketBeat.
Though causing big losses for short sellers has been a stated goal for traders on
The Geo Group, the Boca Raton, Florida-based private-prison company, has also been mentioned as a potential new meme-stock name. The company has a 35% short interest rate, and soared 38.4% Wednesday before declining Thursday.But Geo wasn't listed on HypeEquity as trending or listed among top stocks on Quiver Quantitative. Many Redditors shunned the idea that they were responsible for the record gain Wednesday. One Redditor, echoing the confusion among Wall Street Bets followers, said, "GEO jumped up 30% pre market without a mention on the wsb sub. No explanation though."
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