June 23 (Reuters) – Shares of software company Alfi Inc (ALF.O) fell 10% in early trades on Wednesday after more than doubling in value in the previous session, in a move suggestive of the frenzy known as “memes actions”. which has taken over the stock markets this year.
Alfi’s stock was trading at around $ 14.65 per share at 5:26 a.m. ET after ending Tuesday’s trading at a record high of $ 16.29, and was once again among the most-traded stocks before the Bell.
Some social media users and a portfolio manager on Tuesday cited a report from Benzinga.com that Alfi was planning to buy back shares as helping fuel the rally. Read more
The shares of a group of heavily bypassed companies, including video game retailer GameStop Corp (GME.N) and movie theater operator AMC Entertainment Holdings Inc (AMC.N) have seen wild swings this year in a a phenomenon dubbed the “same stock” rally which was brought to life by small traders on online discussion forums.
Although the short-term interest in Alfi was 3.85% of the float, according to data from Refinitiv, the company was among the top 10 hottest stocks on the trading-focused social media site Stocktwits, a platform commonly seen as a measure of retail investor interest.
Another retail darling, Torchlight Energy Resources Inc (TRCH.O), lost 10% in pre-market trading, extending a 30% drop in the previous session after increasing its stock offering to 250 millions of dollars. Read more
GameStop has also benefited from Reddit’s rally in its stocks, claiming on Tuesday it raised $ 1.13 billion in its latest stock offering. Its shares fell 0.3% after jumping 10% in the previous session.
AMC shares slipped 0.8%, while other memes Clover Health Investments Corp (CLOV.O), ContextLogic Inc (WISH.O) and Petco Health and Wellness Co (WOOF.O) rose 0. 4% to 2.4%.
Report by Sagarika Jaisinghani in Bengaluru; Editing by Shounak Dasgupta
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