Online retailers have found new targets during this week’s resurgence of “meme stock”.
Geo Group (GEO), a company that owns and manages private prisons, saw shares rise by as much as 73% intraday Wednesday for the stock’s biggest record high in a day. Shares mated some progress after reaching as high as $ 11.00 apiece and trading around $ 9 per share. 11:55 in New York.
Natural gas provider Clean Energy Fuels Corp. (CLNE) also rose as much as 46% on Wednesday before trading about 19% higher just before noon east.
Platform traders, including Reddit, have recently sought new stocks to push higher and expand their scope beyond companies facing consumers like GameStop (GME) and AMC Entertainment (AMC). Many of these investors who communicate on forums like Reddits r / WallStreetBets have amassed a lot in stocks that are popular with short sellers in an attempt to catalyze a short press where those who are betting on gains in the stock are rushing themselves to cover their positions and push on stock prices ever higher.
Some of the recent comments on new posts ir / WallStreetBets were filled with messages like “CLNE to 1
Geo Group’s share also shared a similar profile as the original Reddit-powered lovers. Geo Group’s short-term interest accounts for about 37% of its float, according to S3 data quoted by Bloomberg on Wednesday. And the company also endured events earlier in the year that sent the stock lower and made it more attractive to short sellers, after President Joe Biden signed an order restricting the government’s use of private criminal detention facilities in a move that would affect Geo Group’s federal partnerships . .
Meanwhile, some of the other stocks that had been the subject of significant online trading interest earlier in the week were already falling into abuse with some traders. Wendy’s, the first fast food chain to become a notable meme stock this week, saw shares slide 11% intraday Wednesday after jumping 26% a day earlier. The move also coincided with two downgrades from Wall Street firms Stifel and Northcoast, with analysts from both firms noting that the stock’s valuation seemed difficult to justify after the rally.
Shares in ContextLogic (WISH), the parent company of e-commerce site Wish, also returned some gains after rising 50% on Tuesday. Shares in health insurance company Clover Health (CLOV) also fell 15% after a jump of 86% a day earlier.
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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