Earlier this year, shares of some companies set the social media and the stock market buzzing, as they received massive support from the famous WallStreetBets Reddit group.
It appears the same stocks have started rallying again, rewarding investors who had stuck with the stocks even during their turbulent times.
Shares of meme stocks surge
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Express Inc., AMC Entertainment Holdings Inc, and GameStop Corp are all up by more than 37% in the week.
This shows an upsurge that has not been witnessed in months since the late January surge when individual inventors rallied to show unprecedented interest in some stocks abandoned by Wall Street.
However, in comparison to the January upsurge, this week’s price rally is relatively tamer. But it has had an impact on Reddit forums, Twitter feeds, and Discord chat rooms.
Like the January rally, it appears retail traders are driving the upsurge, although the catalyst remains unclear.
An analyst at Wedbush Securities, Michael Pachter, stated that the rush for less valued stocks is happening again. He said those engineering this rush is Reddit traders once again.
“The Reddit raiders are at it again,” he stated, as the shares of AMD and GameStop were among the most widely traded stocks on Wednesday.
Oversold levels of the speculative market
Shares of AMC Entertainment, a Reddit target, rallied 19.2% on Wednesday, pushing its weekly gains to over 60%. Another Reddit target GameStop surged 15.8% the same day, taking its weekly gains to 37%.
Bed Bath & Beyond and BlackBerry were other popular meme stocks that rallied, with 11.6% and 9.9% gains respectively.
Strategists think that that recent upsurge is a result of the oversold levels of the speculative assets. Last week, Bitcoin (BTC/USD) shed as much as 40% within the past week. Other crypto assets such as Ethereum (ETH/USD) also dipped in value. Although some of the losses have been recouped this week, they still had an impact in other markets.
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