The meme-stock spotlight shined upon a new company on Tuesday: Wendy’s shares surged as Reddit investors appeared to turn their attention to the popular burger chain and CNBC host Jim Cramer called it a “huge favourite” of his programme.
YOLO Stocks, a site that tracks Reddit mentions of popular meme stocks, indicated that mentions of Wendy’s were up 3 per cent over the past 24 hours on the popular forum r/wallstreetbets, and the company is ranked number 6 in mentions on the subreddit. Previously it was ranked no. 19.
A meme stock is one that sees a boost in trading activity after gaining attention on social media.
The Street reported that the fast-food restaurant recently shared good news on its financial outlook, including a strong first quarter of 2021.
“Wendy’s shares were marked 15.5% higher in early trading Tuesday to change hands at $26.50 each, a move that would lift the stock’s year-to-date gain to around 25%. The stock hit an all-time high of $27.38 in the opening minutes of trading,” The Street reported. As of 11am EDT, shares were $27.30.
Even CNBC host Jim Cramer got in on the action on Tuesday, celebrating the share price soaring.
The burger chain’s market bump follows similar stock frenzies around GameStop and the AMC movie theatre chain. Last week, AMC offered retail investors free popcorn at theatres this summer as thanks for individual investors buying up shares. AMC has seen its share price grow by more than 1,000 per cent this year.
Reddit’s Wall Street Bets has become a beacon for bored Americans flush with cash after a year of being stuck at home during the coronavirus pandemic. Eager investors have flooded the market, many for the first time, looking for the next meme-friendly stock before others catch on and prices spike.
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