Reddit stock closes near record after two days of meme stock gains | Wilnesh News

Reddit Shares of the stock surged 7% on Tuesday, rising for a second day in a row, after retail traders launched a frenzied buying spree of so-called “meme” stocks.

The stock closed at $62.34, Reddit’s second-highest closing price since its IPO in March.The rally began on Monday when “Roaring Kitty,” also known as Keith Gill, who inspired the meme stock craze in 2021, resurfaced online and his stock price rose. game station and aviation medical center Soaring.

gill shared a photo The X shows a video game player sitting forward in a chair. Gamers often use this image to indicate that they are taking the task seriously. As of Tuesday’s close, the post had been viewed more than 25 million times, according to X.

Reddit played a central role in the meme stock boom three years ago, largely thanks to the WallStreetBets forum, where traders came together to share tips and, in some cases, band together to drive stocks higher or lower. Mentions of GameStop surged on WallStreetBets on Monday following Gill’s announcement.

This image and a series of other cryptic posts were enough to send GameStop and AMC up more than 100% in the past two trading days.Other stocks tied to the meme group also saw gains, including blackberries, Coase and solar power.

“It appears retail investors are becoming more bullish again and willing to take on more risk,” Neil Wilson, chief market analyst at Finalto, said in a note. “There is no underlying reason for the move – GME on A very bad earnings report.”

Citizens JMP equity research analyst Andrew Boone told CNBC on Monday that he doesn’t see any underlying reason for Reddit’s rise. However, he said increased user activity will help boost the company’s advertising business.

“At the end of the day, more users means more impressions, which means they can sell more ads,” Boone said.

Reddit, founded 19 years ago, listed on the New York Stock Exchange at $34 a share on March 21 and soared to $65.11 on March 26. , and then sold off.

watch: Reddit shares rise on gains