- June 8, 2021
- Posted by: Natasha Dailey
- Category: Featured
- Meme stocks like AMC, GameStop, and BlackBerry rallied for the second consecutive day.
- Clover Health led the gains, jumping as much as 41% in early morning trading.
- AMC continued its upward stretch, rising more than 5%.
- See more stories on Insider’s business page.
Clover Health, which sells private health plans for seniors in the Medicare Advantage market, led the gains among meme stocks, surging as much as 41% Tuesday, after rising 32.4% Monday to $11.92.
The Chamath Palihapitiya-backed company is a retail trader favorite and a short-seller target. Investors on popular investing forums like Wall Street Bets have been hyping up the stock this week with the word “short” and “squeeze” among the top three words mentioned alongside it, according to HypeEquity data. The stock has a short volume ratio of 32%, according to data from Fintel.io.
Retail traders also took to BlackBerry, the legacy telecom company that is now focused on cybersecurity. The stock, which has been touted as the next GameStop or AMC for retail traders, is the most-talked about on Reddit investing threads so far this week. It rose about 6% Tuesday to add to Monday’s 14% rise to $15.77.
AMC Entertainment, the world’s largest movie theater chain and last week’s meme-stock pack leader, rose about 6% Tuesday, extending Monday’s 14.8% gains. Retail traders, who make up 80% of the stock’s investor base, have been rallying around the stock in recent weeks, even as a handful of executives along with Mudrick Capital dumped the stock for profit.
GameStop, the meme stock that started it all, also rose about 6% Tuesday after jumping 12.7% to $280.01 Monday. Canadian Cannabis companies Tilray and Sundial, which have gained steam in the last week after Amazon backed a federal bill to legalize marijuana, jumped 4% and 5%, Tuesday, respectively, building on Monday’s gains.
Space tourism company Virgin Galactic, retailer Bed Bath & Beyond, newly minted meme stock Beyond Meat, and Clean Energy Fuels Corp. rose as well after closing higher the day before.