Wendy's surges 19% on day-trader mania as Reddit post highlights its chicken tendies and knack for memes
- Wendy's surged as much as 19% on Tuesday as a Reddit post on WallStreetBets talked up its chicken "tendies" and knack for sharing memes on Twitter.
- Reddit has had an outsize influence on single-stock surges in recenet months - most notably the epic moves in GameStop and AMC Entertainment.
- "Wendy's is literally the perfect stock for this sub," the Reddit post said.
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The Reddit-driven day-trading phenomenon spread to shares of Wendy's on Tuesday, with shares surging as much as 19% after a post on the WallStreetBets forum explained why the fast-food restaurant is "literally the perfect stock for this sub."
Reddit's WallStreetBets forum has had a knack for influencing stock prices, with the most notable examples being the epic rallies they've fueled in both GameStop and AMC Entertainment this year.
In the Wendy's due-diligence post that was submitted yesterday, Reddit user Chillznday offered four reasons why the stock is ideal for the WallStreetBets forum. As of Tuesday morning, the post had just under 1,000 upvotes.
The user talked up its summer salad lineup, its knack for sharing memes on Twitter, its Twitter-meme relationship with GameStop, and its chicken "tendies" offering, which is short hand for chicken tenders and has become a rallying cry for Reddit-day-traders seeking to accumulate wealth.
"Both Gamestop and Wendys have been sharing in this Social Media 'Beef" or 'Metapragmatic Roasting' of each other. Their Twitter profiles are actively following each other and going off each others posts," the Reddit post explained.
GameStop has become the poster boy for Reddit's WallStreetBets forum after the stock surged more than 1,000% and caused big losses for hedge funds who were betting against the company, like Melvin Capital.
The post went on to highlight Wendy's public share float of around 17 million shares, its short interest of around 4%, and its low implied volatility.
"I just really like the stock, and Wendys," Chillznday concluded.
