Reddit sees early spike for second straight day
Reddit spiked after the opening bell for the second straight day of frenetic trading.
The stock has been on a tear lately, rising more than 25% so far this month — and early Wednesday it was up more than 5% for the third straight session — amid both an uptick in chatter surrounding the stock on r/WallStreetBets and a recent rise in short interest in the shares. The percentage of the float in the hands of short sellers rose from about 13% in March to almost 20% in late May. It has since declined to roughly 18%.
Of course, that’s the classic setup for the kind of retail-investor-driven squeeze that put r/WallStreetBets on the map for the broader markets during the GameStop phenomenon of early 2021. That could explain some of the recent liveliness of the shares, though fundamental business developments could be playing a role, too.
An analyst at B. Riley Securities published a note suggesting that the recent massive deal between Meta and Scale AI has positive implications for Reddit, as “the implied $29B valuation for Scale AI points to the intrinsic value of Reddit’s ‘large and growing corpus,’” according to a report on the note published this morning by Fly on the Wall.
Of course, that’s the classic setup for the kind of retail-investor-driven squeeze that put r/WallStreetBets on the map for the broader markets during the GameStop phenomenon of early 2021. That could explain some of the recent liveliness of the shares, though fundamental business developments could be playing a role, too.
An analyst at B. Riley Securities published a note suggesting that the recent massive deal between Meta and Scale AI has positive implications for Reddit, as “the implied $29B valuation for Scale AI points to the intrinsic value of Reddit’s ‘large and growing corpus,’” according to a report on the note published this morning by Fly on the Wall.
