Workhorse defies meme-stock slowdown, soars 59% as Reddit traders target shorts
- Workhorse soared 59% to a two-month high as Reddit traders target the electric vehicle company.
- On Wednesday night, a Redditor published a post saying, "Is WKHS next to moon???"
- Data from MarketBeat show that 39% of Workhorse's shares are shorted in contrast to AMC's 21%.
Shares of Workhorse soared 59% to a two-month high Thursday as Reddit traders target the heavily shorted electric vehicle company.
Workhorse bucked the broader meme-stock downturn Thursday, with AMC Entertainment, Bed Bath & Beyond, GameStop, and Beyond Meat all sinking.
On Wednesday night, a Redditor published a post saying, "Is WKHS next to moon???"
The user detailed reasons why Workhorse should be their next target, including how the Loveland, Ohio-based company has more than doubled its production of trucks compared to the previous three quarters combined. Another Redditor brought up how the stock is heavily shorted.
Data from MarketBeat show that 39% of Workhorse's shares are sold short, in contrast to current Reddit favorite AMC's 21%.
On Wednesday, meme stocks saw a blistering rally, with AMC leading the charge. The stock of the movie-theater chain surged as high as 126% to around $72 in the previous session before paring some gains.
"The surge in shares of AMC Entertainment is yet another sign of the reckless meme stock-driven investing landscape that we find ourselves in today" David Trainer, CEO of New Constructs, an investment research firm, said.
AMC sank as much as 17% early Thursday however after the company filed a plan to sell nearly 12 million shares.
Retail traders that spurred the GameStop mania in January this year have revived their efforts of flooding into other heavily shorted meme stocks in an effort to squeeze short-sellers. Thus far, short-sellers, mostly hedge funds, have lost billions in their bouts with Reddit traders.
Shares of Workhorse were trading higher by 23.74% to $14.26 as of 11:40 a.m. ET.