A fresh group of meme stocks ($GEO and CLNE) has superseded $CLOV, $WISH, $SPCE, $AMC, and $GME in their recent rally, gaining over 30%.
Meme stock Clover Health Investments Corp. CI A (NASDAQ: CLOV) was trading around $17.49 up 2.19% in today’s pre-market session. Previously, the meme stock rallied 86% and closed at $22.15, erasing five months’ worth of losses. ContextLogic Inc. platform – Wish (NASDAQ: WISH) stock was at $11.37, up 7.26%, also in today’s pre-market session. Additionally, Virgin Galactic Holdings Inc (NYSE: SPCE) stock was at $34.97, down 0.54%.
Older WallStreet’s favorite meme stocks such as AMC Entertainment Holdings Inc (NYSE: AMC) stock was $48.23, down 2.41%, and GameStop Corp (NYSE: GME) was $284.30, down 6.04%. The latter has, however, seen its shares climbed up over 1500% this year. Moreover, AMC and Clover Health have spiked up at least 80% in June, but this has brought the Russell 3000 Index up 1% only.
New Meme Stocks Gaining, SEC Monitoring Continues
Of note, a fresh group of meme stocks ($GEO and CLNE) has superseded $CLOV, $WISH, $SPCE, $AMC, and $GME in their recent rally, gaining over 30%. The new batch has created a trading craze and rising speculations of short squeezes. Geo Group Inc. (NYSE: GEO), a real estate investment trust company, saw its shares rise 38% in Wednesday’s intraday trading. In today’s premarket, the company stock was at $8.21, down 6.70%. Clean Energy Fuels Corp. (NASDAQ: CLNE) saw a 32% gain and was at $13.70, up 4.61% during today’s pre-market session.
Meanwhile, the U.S. SEC reported earlier this week that it plans to conduct investigations in markets for any signs of meme stocks manipulation. Additionally, SEC chairman Gary Gensler instigated reviewing of the stock markets’ structure, including the best execution requirements.
Meme stocks have continued to rally, despite the stumbling block from SEC’s ongoings. In Europe, Air Berlin PLC & Co (FRANKFURT: AB1) surged 138%, more than its previous day’s hike of 54%. In today’s market, its stock traded at €0.03, down 19.60%. Meanwhile, Wendy’s Company (NASDAQ: WEN), a fast-food restaurant chain, saw a drop in its shares after Stifel and Northcoast analysts downgraded it to hold rather than buy.
“This is far from just something that the Reddit traders are playing in. There are a lot of momentum-based hedge funds (with algos) that have a lot of money pushing these things around,” Matt Maley, a chief market strategist from Miller Tabak + Co., LLC said. He also added that recent meme stock gains show a ‘liquidity phenomenon’.
Maneesh Deshpande, an analyst from Barclays said in a note that the rally in the fresh meme stocks increased the daily single stock option volume to around $383 billion in the past week.
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