- New meme names Clean Energy Fuels and ContextLogic jumped as much as 45% and 28%, respectively.
- CarLotz and Workhorse also extended rallies from the prior session, alongside Clover Health.
- Wendy’s, meanwhile, dropped after seeing big gains Tuesday.
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Reddit traders are driving rallies in a string of new meme stocks this week, including Clean Energy Fuels and ContextLogic, among others.
Clean Energy Fuels, the Newport Beach, California-based natural gas provider, jumped 45% Wednesday, as ContextLogic, the mobile e-commerce company, jumped 28%, building on a 50% rise during Tuesday’s trading session.
The two new meme stocks were among the top-trending companies on Reddit investing threads like Wall Street Bets, according to HypeEquity data. Largely bullish Redditors agreed ContextLogic “has room to grow,” and as for Clean Energy Fuels, the phrase “short squeeze” was a common theme.
Recently, Redditors have also renewed their interest in Clover Health, the health-insurance provider backed by Chamath Palihapitiya. The stock – which plummeted earlier this year following a report from short-seller Hindenberg Research accusing the company of misleading investors, customers, and the federal government – remained the top-hyped name on Reddit. The stock was also trending on Twitter.
Clover rose 21% Wednesday, building on an 86% gain from the day prior.
Auto retailer CarLotz and electric vehicle-maker Workhorse bolstered gains from Tuesday, rising as much as 10% and 18%, respectively, thanks to their new status as meme stocks among Reddit investors. Meanwhile, electric-vehicle manufacturer Canoo whipsawed after rallying the day prior.
As for Wendy’s, the fast-food restaurant struggled to replicate the previous day’s rally as it dropped as much as 7% after the market opened. The stock on Tuesday ended at its highest level in nearly two decades, at $28.87, higher by almost 26%.
For Wendy’s, the word “tendy” was the most mentioned in posts about the company – a reference to both chicken nuggets on the menu and Reddit lingo that equates “tendies” with returns on investment.
Meanwhile, meme stock classics AMC Entertainment and BlackBerry, which have remained steady this week after massive gains last week, dropped. The movie-theater chain fell as much as 12%, while BlackBerry dropped 9%. GameStop, this year’s original meme stock, saw a modest rise.