Wendy's (WEN.US) stock, which recently become center of attention from the WallStreetBets subreddit crowd, fell more than 10% after fast food chain was downgraded by research analysts at Northcoast Research from a "buy" rating to a "neutral" rating in a report issued on Wednesday, Briefing.com reports. Also recently Stifel downgraded its investment recommendation on the company to ‘hold’ from ‘buy’, saying the Reddit-fueled surge has overtaken the fundamental upside for the company.
Meanwhile other meme stocks are trading in mixed moods. Clover Health (CLOV.US) was the most discussed stock by far on WallStreetBets on Wednesday, according to Swaggystocks.com. However during today's session shares of the new retail trader favorite fell 15% partially erasing yesterday’s 86% gain. Video game retailer GameStop Corp (GME.US) stock rose more than 4%. Company will provide its quarterly results after market close, with a cult following of individual investors who fueled its rally looking for progress the turnaround. Meanwhile movie theater company AMC Entertainment (AMC.US) shares fell nearly 10% while BlackBerry (BB.US) managed to erase early losses and is trading slightly below the flat line.
According to data from Vanda Research, meme stocks have received $ 1.27 billion of retail inflows in the past two weeks. This is in line with the January peak, when bearish investors were forced to liquidate shorts due to the rapidly rising GameStop share price, which only pushed the stock price even higher. However this time retail investors need to take into consideration that institutional investors are using some sophisticated options to bet against them while reducing their own risk, as they try to avoid the fate of Melvin Capital.
Wendy's (WEN.US) stock erased the majority of its yesterday gains and is currently approaching the upper limit of the ascending channel,which acted as a support also during yesterday’s session. Source: xStation5