Meme stocks are back, and the mania is actually spreading far beyond GameStop and AMC Entertainment . The number of members in the red-hot ” wallstreetbets ” Reddit forum has ballooned to more than 15 million as the trading craze returns to Main Street. The latest frenzy was triggered by a single post on social media site X from “Roaring Kitty,” the man who inspired the epic meme stock mania in 2021. Quiver Quantitative , an alternative data analytics firm, looked to find all the meme stocks that are popular among the Reddit traders. The so-called WallStreetBets score is based on how many times a company has been mentioned on the forum over the last week. Meanwhile, the fails-to-deliver, FTD, score is based on the ratio of median aggregate FTD over the last 60 days to shares outstanding. Failure to deliver refers to a situation in which the buyer or the seller of a trading contract can’t meet their trading obligations. High levels of FTDs can occur when there’s increased volatility and an elevated amount of short squeeze activity â that is, when a stock rises and investors betting against the name are forced to buy shares and cover their short positions. Crypto miner Marathon Digital turned up very high in the rankings. The stock action has been relatively muted so far, up more than 5% this week, while GameStop has popped more than 180% in that period. A few names associated with the artificial intelligence boom also became popular meme stocks, including voice AI and speech recognition company SoundHound AI , AI IT services firm BigBear.ai and Super Micro Computer , a maker of servers. Super Micro Computer produces servers and other computer infrastructure, and it’s one of the primary vendors for building out Nvidia-based “clusters” of servers for training and deploying AI models. The company joined the S & P 500 benchmark after a swift rally. Other under-the-radar meme names included B. Riley Financial, Spirit Airlines , Tilray Brands and Smart for Life. B. Riley was one of the sales agents of AMC’s equity offering completed during Monday’s wild trading.
Source Agencies
