reddit The stock soared 7% on Tuesday, rising for a second straight day after retail traders began a buying frenzy in so-called meme stocks.
The stock closed at $62.34, the second highest closing price on Reddit since its IPO in March. The rally began on Monday when the man who inspired meme stock mania in 2021, Keith Gill, aka “Rolling Kitty,” reappeared online and submitted stocks. game stop and AMC Rapidly rising.
Gil shared a photo In X, a video gamer was depicted sitting facing forward in a chair. This image is often used by gamers to show that they are serious about their task. As of Tuesday’s close, the post had been viewed more than 25 million times, according to X.
Reddit played a central role in the meme stock boom three years ago thanks to WallStreetBets, a forum where traders gathered to share tips and, in some cases, band together to push stock prices up or down. did. Mentions of GameStop spiked on WallStreetBets on Monday following Gill’s post.
This image and a series of other cryptic posts were enough to send GameStop and AMC up more than 100% over the past two trading sessions. Other stocks in the meme group also rose. blackberries, costume and sunpower.
“Retail investors appear to be bullish again and more willing to take on more risk,” Neil Wilson, chief market analyst at Finalt, said in a note. “There is no fundamental reason for this move. GME’s last earnings report was terrible.”
Citizens JMP equity research analyst Andrew Boone told CNBC on Monday that he doesn’t see any fundamental reason for Reddit’s rise. Still, he said the increase in user activity will help boost the company’s advertising business.
“At the end of the day, more users means more impressions, which means more ads to sell,” Boone said.
Founded 19 years ago, Reddit debuted on the New York Stock Exchange on March 21st at $34 per share, rising to $65.11 on March 26th. The stock then began to sell off, dropping to $39.17 in April before rising. The boost came from Reddit’s better-than-expected earnings report earlier this month.
clock: Reddit stock soars on earnings