- June 9, 2021
- Posted by: Stratford Team
- Category: Markets
- Wendy’s stock whipsawed Wednesday, looking to build on Tuesday gains as Reddit investors look to reap further gains, known as “tendies” in Wall Street Bets parlance.
- New meme names Clean Energy Fuels and ContextLogic jumped more than 30% early Wednesday.
- CarLotz and Canoo also extended rallies from the prior session, alongside Clover Health.
- See more stories on Insider’s business page.
Reddit traders are driving rallies in a string of new meme stocks this week, including Wendy’s, Clean Energy Fuels, and ContextLogic, among others.
Clean Energy Fuels, the Newport Beach, California-based natural gas provider, jumped 32% Wednesday morning, as ContextLogic, the mobile e-commerce company, jumped 38%, building on a 50% rise during Tuesday’s trading session.
Fast-food restaurant Wendy’s struggled to replicate the previous day’s rally, rising a modest 4% before fluctuating between losses and gains. The stock on Tuesday ended at its highest level in nearly two decades, at $28.87, higher by almost 26%.
The three new meme stock names were among the top-trending companies on Reddit investing threads like Wall Street Bets, according to HypeEquity data.
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.
As for ContextLogic and Clean Energy Fuels, Redditors were more bullish than bearish on the stocks with hundreds of buy and call comments and far fewer about selling, the data showed.
Auto retailer CarLotz and electric vehicle-maker Canoo continued to bolster gains from Tuesday as well thanks to their new status as meme stocks among Reddit investors. Both were up more than 13% Wednesday.
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 more than 20% Wednesday morning, building on an 86% gain from the day prior.
Meanwhile, meme stock classics AMC Entertainment and BlackBerry, which have remained steady this week after massive gains last week, dropped in early morning trading. GameStop, this year’s original meme stock, saw a modest rise.