Members of the WallStreetBets forum on Reddit are shifting their attention to the biotech and healthcare sectors. This was signed by the rise of some biotech and healthcare companies by 10% on Monday.
The WallStreetBets forum in Reddit has been running against Wall Street. Individual traders in the forums bid up shares of heavily shorted stocks, pushing up stock prices from Wall Street’s prediction. This phenomenon is also known as a “short squeeze“.
Some of the companies which experienced the short squeeze from the Reddit army are video game retailer GameStop Corp and cinema operator AMC Entertainment. Both companies, named as the so-called “meme stock” rally this year, recorded over a 1,100% surge in their shares price since the end of December.
Following over 300% rise in the past three weeks, shares for AMC in early deals increased by 3.5%. Accordingly, shares for GameStop grew 1.1%.
Reddit army’s support on biotech and healthcare companies
The Reddit army is now targeting different sectors: biotech and healthcare.
Novavax Inc and Vaxart are some of the companies that received support from the Reddit army. Both companies respectively trend the third and fourth on trading-focused social media site Stockwits. Message volume for Vaxart grew 9.7% higher with nearly 97% of them reflecting a positive sentiment. Shares for Vaxart also surged 1.6%.
On the other hand, Novavax recorded a 10.3% increase in premarket trading. The rise in the company’s shares follows the company’s late-stage data report from a US-based clinical trial. The result of the trial shows that its vaccine has over 90% effectiveness against COVID-19 across a variety of variants of the virus, Reuters reports.
Meanwhile, stocks that were favoured in recent weeks have started to fade.
Read also: Clover Health Surge as “Meme Stocks” Go Up 109%
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