(Bloomberg) — Another batch of names has been added to the meme-stock frenzy as retail traders latched on to their latest favorites Wednesday.
Prison operator GEO Group Inc. soared 55% and Clean Energy Fuels Corp. jumped 30% as of 1:33 p.m. in New York, supplanting names like ContextLogic Inc. and Clover Health Investments Corp. that had led the charge higher on Tuesday. In Europe, Air Berlin jumped 138% after surging 54% the day before. Meanwhile, shares of fast-food restaurant chain Wendy’s Inc. reversed gains from Tuesday after both Northcoast and Stifel downgraded the stock to hold-equivalent recommendations from buy.
Trading in so-called meme stocks took off this week, with chatter building on WallStreetBets and other social media platforms on the potential for short squeezes as investors in the forums rallying against short sellers.
Speculative frenzy among the Reddit-favorite names has been especially pronounced as a broader stock market hasn’t gone anywhere for most of the past month. While shares of AMC Entertainment Holdings Inc. and Clover Health have jumped at least 85% in June, the Russell 3000 Index has advanced only 1%.
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