Wendy’s Becomes Latest ‘Meme Stock’ As Shares Surge To Record Highs
Wendy’s has become the latest company to jump onboard the meme stocks train, after the fast food chain saw its stock price reach an all-time high on Tuesday, June 8.
Thanks in part to increased popularity among Reddit investors, as well as recent shout-outs from prominent Wall Street analysts monitoring the meme stocks trend, Wendy’s hit a record price of $27.38 when trading opened earlier today, settling to around $27.20 by midday EST.
According to The Street, Wendy’s shares were up more than 15%, with today’s increase bringing their year-to-date gains to around 25%. YOLO Stocks, which logs activity on Reddit forums popular with investors, said that mentions of Wendy’s were up 3% in the past 24 hours, with the company jumping from 19th place to become the 6th most-mentioned stock on the site.
The fast food chain’s rapid rise has also attracted attention from Wall Street analysts, with CNBC’s Jim Cramer – host of Mad Money – giving the latest meme stock his own seal of approval earlier today.
Ahead of the opening bell, Cramer tweeted, ‘Wendy’s ($WEN) a huge favorite of @MadMoneyOnCNBC gets nice push from Reddit. I think it deserves to be higher.’
CNN reports that unlike classic meme stocks like GameStop and AMC, Wendy’s hasn’t been seeing short-selling activity – where investors bet against a company – with a number of major hedge funds holding significant shares in the company.
But that hasn’t stopped Reddit from deciding to pile on all the same. Apparently, users have spotted a kindred spirit in Wendy’s’ notorious social media presence, on which the company often jokes about its products and competitors, and also pointed out that the fast food joint sells chicken ‘tendies’ – a word also used on r/WallStreetBets to refer to trading profits, per CNN.
‘This makes so much sense for this sub. Why aren’t we all invested in this?’ one user posted, with another writing ,’I’m reading this at Wendy’s so you know I’m in.’
True to form, Wendy’s responded to its newfound meme stock fame on Twitter today, posting, ‘Did you hear we have a new salad?’
Wendy’s isn’t the only company to see gains today, with GameStop and AMC also rallying as trading opened. The r/WallStreetBets forum also seems to have picked out its next target, with users urging fellow investors to back BlackBerry in an effort to take the classic noughties phone company ‘to the moon’.
Featured Image Credit: Special Meme Fresh/PA Images
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