The latest additions to the meme Stock frenzy surged in retail trading as retail traders latched on to their newest favorite.
ContextLogic Inc. rose 33% and Clover Health Inc. rose 18% at 5: 21 a.m. on Tuesday, both extending huge gains in New York. Fast-food restaurant chain Stifel Inc. climbed 4.3% on Tuesday, extending the 26% advance and easing a downward push from Wendy's Inc.
Gains for ContextLogic, the operator of the proposed online retailer Wish.com, follow discussions on the Reddit forum WallStreetBets of a potential short squeeze. Clover, a health insurer backed by venture capitalist Chamath Palihapitiya, is in demand after retail traders realized that short sellers had been swelling their bets against stocks.
Chatter built this week on WallStreetBets on the potential for short squeezes, following similar successful ploys on meme stocks like Virgin Galactic Holdings Inc. and Richard Branson's space exploration company Workhorse Group Inc.
Stifel was downgraded to hold from buy from Wendy's, which said the stock's valuation now fully reflects the growth it was assuming in order to reach its price of $25. In a note, analyst Chris O'Cull said he is still very 'constructive to his fundamental outlook on the company.
More stories like this are available on bloomberg.com.