Reddit Users Fuel Fresh Gains for Swimwear, Headphone Stocks

Bookmark

Jan 28 2021, 5:07 PMJan 28 2021, 8:32 PMJanuary 28 2021, 5:07 PMJanuary 28 2021, 8:32 PM

(Bloomberg) -- An attack on short positions by Reddit users continued for some stocks Thursday, sending their valuations soaring once again, while others trimmed recent huge rises.

The share prices of headphone-maker Koss Corp. and swimwear manufacturer Naked Brand Group Ltd. more than doubled in premarket trading, having already gained 1,538% and 203%, respectively, this week as hedge funds scrambled to close short trades on a number of companies touted on the WallStreetBets forum.

The most-prominent example of the recent short squeeze mania, GameStop Corp., see-sawed in premarket trading and was down 12% at 9:02 a.m. in New York. The stock has surged 1,745% this year.

XpresSpa Group Inc., an airport spa operator that pivoted to Covid-19 testing, surged as much as 48% as Reddit users dubbed it the “next short squeeze.” Other short favorites rising included biotech Cel-Sci Corp. and miner First Majestic Silver Corp.

Cinema group AMC Entertainment Holdings Inc., meanwhile, was down 20%, having erased its pandemic-induced plunge Wednesday with a 300% surge. Retailer Express Inc. slipped too following a surge this week, while Bath & Beyond Inc., and fashion firm Fossil Group Inc. erased declines ahead of the open.