Clover Health, Wendy's join AMC, GameStop in meme mania
Clover Health is on pace for largest percent increase ever
SEC chair Gensler weighing potential crackdown on meme stock trading: Sources
Sources tell FOX Business' Charlie Gasparino that Gensler is worried easy-to-use trading platforms encourage the buying of risky stocks.
Clover Health Investments and Wendy’s are now part of the meme stock parade, joining AMC and GameStop, among others.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CLOV | CLOVER HEALTH INVESTMENTS | 3.67 | -0.68 | -15.63% |
Shares of the health care company geared to Medicare customers soared Tuesday, on pace for the highest close ever amid heavy volume. The company went public via a special-purpose acquisition corporation, or SPAC, in January. There is no concrete financial update, but the shares are trending on Twitter under the ticker $CLOV.
Reddit fans at WallStreetBets note it's on their short interest list. The company declined to comment to FOX Business on the stock action.
And fast-food chain Wendy's also getting whipped higher. It too is on pace for a record close.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WEN | THE WENDY'S CO. | 19.89 | -0.51 | -2.48% |
Like Clover, there is no concrete financial news on the company, however, it did announce plans to roll out its Summer Strawberry Chicken Salad again this season.
As for AMC and GameStop, those shares also vaulting higher for another session. On Monday, the SEC in a statement to FOX Business confirmed it was monitoring the unusual trading in select stocks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 23.44 | +0.36 | +1.56% |
| AMC | AMC ENTERTAINMENT | 4.29 | -0.28 | -6.02% |
"SEC staff continues to monitor the market in light of the ongoing volatility in certain stocks to determine if there have been any disruptions of the market, manipulative trading, or other misconduct. In addition, we will act to protect retail investors if violations of federal securities laws are found," the SEC said.
GAMESTOP, AMC SURGE PROMPTS SEC STATEMENT
FOX Business also reported SEC Chairman Gary Gensler is mulling a crackdown on the "gamification" of these names with a regulatory layer known as Regulation Best Interest.
SEC MULLS GAMESTOP, AMC ‘GAMIFICATION’ CRACKDOWN WITH REGULATORY LAYER
GameStop reports earnings Wednesday and will also host its annual meeting, where Ryan Cohen, the founder of Chewy, is expected to be named chairman of the board. He owns nearly 13% of the company and is its largest individual shareholder.