Meme stock watchers turned their attention to the fast-food chain Wendy’s (WEN) on Tuesday. Some redditors believe it will be the next “AMC” — but, based on strong fundamentals, it could even prove to be more than just a meme.
Wendy’s has captured the attention of the reddit community with shares getting bid up in the pre-market to an all-time high. According to data from Yololstocks.live, WEN became the sixth-most talked about stock online in the last 24 hours.
But Wendy’s may deserve a little more credit than other meme-stock phenomenons. The company’s underlying fundamentals are quite good; keep in mind, the company raised its full-year profit forecast last month amid a stronger-than-expected sales environment. Meanwhile, the company is seeing input from a real-deal investor –Nelson Peltz’s Trian Fund Management is the activist pushing Wendy’s to greater profitability.
Elsewhere in the markets, the crypto space is facing challenges today amid growing criticisms surrounding its environmental impact and less-than-expected privacy.
Some investors are just now waking up to the fact that governments can ways to track crypto transactions — including the ransomware attack on Colonial Pipeline. It has been reported that the U.S. government seized most of the bitcoin ransom that Colonial provided to the hacker group DarkSide. The FBI was able to access the “private key” (password) for one of the hackers’ bitcoin wallets. We’ve repeatedly warned that bitcoin isn’t quite as private as some might like to believe.
Stocks To Watch
Today’s moves are all about meme stocks.
The struggling investment company Clover Health saw its shares rise more than 30% in premarket trading, on a wave of retail investor interest. As retail investor interest is likely at an all-time high, other “meme stocks” will very likely benefit as well.
Wendy’s stock surged in premarket trading on no apparent news. That is, other than the fact that the company announced it will release a summer salad recipe. However, the company has come under the attention of the Reddit group WallStreetBets. One poster called it a “perfect stock” for WallStreetBets users, citing its social media presence and its appeal to younger consumers. The post gathered substantial traffic and could be what’s behind the rally.
(Stocks to Watch continues below…)
WallStreetBets favorites GameStop, AMC and BlackBerry were also up, as “meme stock” interest hits new highs. After all, a rising tide lifts all boats.
- CLOV Clover Health Investments Corp $17.40, +45.81%
- WEN Wendy’s Co. $26.25, +14.08%
- AMC AMC Entertainment Holdings Inc $58.40 +6.18%
- BB BlackBerry Ltd $16.55, +4.95%, 197K (volume)
- GME GameStop Corp $289.11, +3.25%
Commodities To Watch
Oil prices continue to drop as the stock market shows mixed performance. Gold is stable tipped above $1,900 again.
- WTI crude: $68.59, -0.92%
- Brent crude: $70.85, -0.90%
- Gold: $1,901.00, +0.12%
The global crypto market cap decreased by 10.56% in the last 24 hours. Bitcoin traded below $33,000, the lowest it has been since January 2021.
The week has not been good for crypto. One of its primary selling points is being beyond the reach of the governments. This was put in question since the news came out that most of the ransom paid to Colonial Pipeline hackers was recovered by the U.S. government.
Trish Intel has already warned that governments are crypto is not a safe haven from the government many believed it to be; governments are quickly finding new ways to follow the money.
China is cracking down too. The CCP suspended several crypto-related accounts on the social media platform Weibo last weekend.
It looks like major changes will be needed to make sure crypto delivers on its promises. I’m personally sure that the technology and the free market will deliver eventually.
- BTC: $32,808.58, -10.14%
- DOGE: $0.3246, -13.00%
- ETH: $2,489.37, -11.87%
- XRP: $0.8596, -10.58%
- ADA: $$1.51, -12.41%
U.S. equities were mixed in early trading with investors still on edge about whether or tnot the Fed is considering tapering.
- S&P 500: 4,232.32, +0.14%
- Nasdaq: 13,942.00, +0.44%
- DOW futures: 34,624.00, -0.01%
U.S. Dollar and Treasuries — The dollar was stable, 10-year Treasury yields crept slightly higher
- U.S. Dollar Index (DXY): 90.09, +0.16%
- 10-year Treasury yield: 1.569%, from previous 1.560%
- 2-year Treasury yield: 0.160%, from previous 0.140%