Bitcoin’s value is declining on Wednesday, but retail investors are shifting their attention to another risk asset, fueling a nearly 26% surge in shares of the fast-food chain Wendy’s (WEN).
Wendy’s Stock Soars Amidst Reddit Buzz
The stock of the McDonald’s and Burger King competitor, which had fallen to as low as $6.08 per share in early week trading, closed Wednesday at $7.86. This represents a daily increase of over 25%, following a post on Reddit that identified the company as a franchise in need of rescue. Wendy’s shares climbed to a high of $8.89 during Wednesday’s trading session and continued to rise in after-hours trading as of this report.
“Save Wendy’s” Movement Gains Traction
A post titled “We need to save Wendy’s” has garnered over 18,000 upvotes on the popular investing forum r/WallStreetBets. This platform rose to prominence for its role in initiating the GameStop meme stock saga, driven by the rallying calls of Keith Gill, also known as RoaringKitty.
The Reddit post states, “We need to save Wendy’s before it’s too late,” emphasizing the company’s significant share price decline in recent years. It adds, “If this company goes bankrupt, we’ll all be out of a job!”
Trading Volume Explodes
Beyond the dramatic share price increase, trading volumes for Wendy’s have also surged. More than 203 million shares changed hands before the market close on Wednesday. In comparison, the stock typically sees an average of less than 10 million shares traded daily, according to data from Yahoo Finance, marking a 1,970% increase.
Despite Wednesday’s rally, Wendy’s shares remain down 36% over the past year and 66% over the last five years, according to Yahoo Finance data.
Retail Investor Activity Intensifies
In addition to the prominent call for action, numerous individual posts on r/WallStreetBets have showcased purchases of Wendy’s shares or long options trades, which are speculative bets on an upward price movement.
This surge in interest has propelled Wendy’s ticker to the number one trending spot on StockTwits, a financial social media platform that monitors posts and sentiment surrounding various assets.
Crypto Market Echoes Trend
Unsurprisingly, cryptocurrency investors have also sought to capitalize on the trend. A meme coin version of the stock, branded as WEN and created on the token launchpad Pump.fun, has seen its market capitalization jump to $439,000 on the Solana blockchain in the past 24 hours, representing a gain of over 1,450%.
A pinned comment on the popular Reddit post indicates that the original poster has promoted this same token, which begins with the Solana address “Eav7v,” in their site bio.
The r/WallStreetBets forum has a history of propelling similarly situated companies in traditional markets, leading to sharp stock movements for entities such as AMC Entertainment (AMC), Blackberry (BB), and Bed Bath & Beyond (BBY) in the past.
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