Meme stocks surge for a 2nd day as retail traders stay bullish on red-hot names
- Meme stocks like AMC, GameStop, and BlackBerry rallied for the second consecutive day.
- Clover Health and Wendy's led the gains, jumping as much as 55% and 19%, respectively.
- AMC Entertainment continued its upward stretch, rising as high as 7%.
A pack of meme stocks from AMC Entertainment to Clover Health and Wendy's headed for a second day of gains Tuesday as they rose in early morning trading.
Clover Health, which sells private health plans for seniors in the Medicare Advantage market, led the gains among meme stocks, surging as much as 55% Tuesday, after rising 32.4% Monday to $11.92.
The Chamath Palihapitiya-backed company is a retail trader favorite and a short-seller target. Investors on popular investing forums like Wall Street Bets have been hyping up the stock this week with the word "short" and "squeeze" among the top three words mentioned alongside it, according to HypeEquity data. The stock has a short volume ratio of 32%, according to data from Fintel.io.
Fast-food chain Wendy's, a new name among meme stocks, jumped as much as 19% after a post on Reddit thread Wall Street Bets explained why it is "literally the perfect stock." Plus, Mad Money's Jim Cramer posted a tweet, saying the share price "deserves to be higher."
Retail traders also took to BlackBerry, the legacy telecom company that is now focused on cybersecurity. The stock, which has been touted as the next GameStop or AMC for retail traders, is the most-talked about on Reddit investing threads so far this week. It rose as much as 7.1% Tuesday to add to Monday's 14% rise to $15.77.
AMC Entertainment, the world's largest movie theater chain and last week's meme-stock pack leader, rose 6.8% Tuesday, extending Monday's 14.8% gains. Retail traders, who make up 80% of the stock's investor base, have been rallying around the stock in recent weeks, even as a handful of executives along with Mudrick Capital dumped the stock for profit.
As for GameStop, the meme stock that started it all, it rose more than 14% Tuesday after jumping 12.7% to $280.01 Monday.
Canadian Cannabis companies Tilray and Sundial, which have gained steam in the last week after Amazon backed a federal bill to legalize marijuana, jumped 2.7% and 4.4%, Tuesday, respectively, building on Monday's gains.
Space tourism company Virgin Galactic, retailer Bed Bath & Beyond, newly minted meme stock Beyond Meat, rose as well after closing higher the day before. Meanwhile, Clean Energy Fuels Corp., which has been heavily touted on Reddit, fell as much as 6.6%.