Retail merchants from Reddit have their eyes set on two new darlings – fast-food chain Wendy’s and Medicare insurance coverage start-up Clover Health, each of which have seen massive features in current days.
Boom Bust talks to Michele Schneider of MarketGauge.com to search out out what’s behind the brand new trading frenzy. With Wendy’s, it wasn’t essentially a brief squeeze, she says.
“It has really got the attention of the Reddit traders because of the term ‘chicken tendies’ which means profit. It was viral on Twitter in terms of the actual stock. And they drove the stock to new all-time highs… But really, it was more the attraction along with the meme stocks,” Schneider explains.
She factors out that with Clover Health, “it was a true short squeeze situation and that stock also went to new all-time highs.”
“So, it’s an interesting situation what’s going on here, how they pick these stocks, and of course everybody is trying to guess what will be the next new darlings,” she says.
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