Blackberry, AMC and Other Reddit YOLO Favorites That Aren't GameStop
By Sebastian Pellejero and Marco Quiroz-Gutierrez
It isn't just GameStop.
Shares of the Texas-based videogame retailer surged as much as
145% on Monday alone, before giving up most of their gains to end
up only 18%. But GameStop Corp. is far from alone in going vertical
Everything from a Chinese hydrogen battery maker to a struggling
movie-theater chain have rocketed in the past few weeks. Behind the
swings, many see ordinary investors, stuck at home in the pandemic,
swapping tips and hatching trading strategies on online forums like
Reddit's WallStreetBets -- often buying things Wall Street has bet
against. Many tout their long-shot wagers with the expression
"YOLO," or, "You only live once."
Here's a look at what else has their attention:
AMC Entertainment Holdings Inc .
Shares of the movie-theater operator have risen more than 30%
this week after the company announced a $917 million financing deal
to avoid filing for bankruptcy. But day traders' enthusiasm for the
company had already allowed it to sell millions of dollars' worth
of shares last year, helping raise much needed cash.
Security software and service provider BlackBerry is another
stock with a notable short position finding support online from
individual investors. Shares have climbed around 25% this week,
leaving many analysts scratching their heads. The company said
Monday it wasn't aware of any material developments or change in
its business that would account for the recent jump.
The Chinese electric-vehicle maker has received enduring
interest from individual traders on social media platforms
including Discord and Reddit, sending shares of its ADR up more
than 1,000% in the past 12 months. NIO now ranks among the world's
top five auto makers, with a market capitalization around $96
billion. The company delivered 43,728 vehicles in total last year.
That compares to around 449,000 deliveries by Tesla Inc., and more
than 9 million from Volkswagen AG.
Palantir Technologies Inc.
Data-analytics firm Palantir Technologies' shares have soared
over 260% since the company went public back in September, making
it one of last year's best performing stock offerings. The company
has also become a favorite of individual investors posting online,
who like it because of the exposure to big data and government
contracts. Later today, Palantir will show off the latest
developments in its software to the public for the first time ever,
a move some analysts expect to have positive ramifications for the
Plug Power, Inc.
Shares of hydrogen battery maker Plug Power have gained more
than 370% in the past three months, powered by investors eager to
cash in on the green economy. Individual investors online lauded
Plug Power as the next big thing after South Korea-based SK
Holdings Co. invested $1.5 billion in the company earlier this
month. Others are less optimistic, with hedge funds including
Kerrisdale Capital Management betting against the stock, saying
hydrogen batteries face numerous challenges including efficiency
Bed Bath & Beyond Inc.
Shares surged as much as 50% Monday before paring gains and are
now up around 70% in 2021, even after the home-goods retailer this
month reported third-quarter earnings per share of 8 cents, short
of the 19 cents analysts expected, along with a 5% drop in revenue
from the same period last year. Online traders point to an early
2020 change in management and the fact that the company is buying
back shares as signs that the share price will continue to
Write to Sebastian Pellejero at firstname.lastname@example.org
(END) Dow Jones Newswires
January 26, 2021 12:36 ET (17:36 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.