The latest meme stocks surged on Wednesday’s premarket trading after online chatter in a popular Reddit group for retail investors, Bloomberg reported.
- Wish.com operator ContextLogic Inc. leaped 39% after retail investors discussed a potential squeeze on Reddit subgroup WallStreetBets.
- Insurer Clover Health Investments Corp. jumped 25% after traders found that there were significant bearish bets against the stock. The firm is backed by venture capitalist Chamath Palihaptiya.
- Fast food chair operator Wendy’s Inc. extended its gains after Tuesday’s 26% climb. Stifel downgraded its rating on the stock to hold from buy noting the current valuation already reflects potential growth.
The U.S. Securities and Exchange Commission earlier this week said it will look into possible market manipulation amid the surge of meme stocks. WISH is up 28.23%; CLOV is up 21.90%; and WEN is up 0.10% premarket.