Geo, ContextLogic, Clovis Oncology Get Swept Up in Meme Stock Surge
More companies joined the meme stock party Wednesday, with shares of Geo Group (GEO) - Get Report, ContextLogic (WISH) - Get Report and Clovis Oncology (CLVS) - Get Report pushing higher.
Geo is the Boca Raton, Fla., real estate investment trust, ContextLogic is the San Francisco parent of internet retailer Wish, and Clovis Oncology is the Boulder, Colo., biotech company.
Another meme stock that raised the roof Wednesday was Clean Energy Fuels (CLNE) - Get Report, which provides natural gas for vehicle fleets.
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Geo recently traded at $9.02, up 42%; ContextLogic at $11.82, up 1.6%; and Clovis Oncology at $6.60, up 16%. Clean Energy Fuels leaped to $12.16, up 23%.
On the downside, health insurance company Clover Health Investments (CLOV) - Get Report at last check slumped 8% to trade at $20.38.
Many of the stocks garnered positive commentary on blog site Reddit’s WallStreetBets page. Retail investors there seek to punish short sellers, investors who bet that stock prices will decline.
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Another meme stock bucking the upward trend is Wendy’s (WEN) - Get Report, which recently traded at $26.94, down 7%, after surging 26% Tuesday.
Stifel analyst Chris O’Cull downgraded the restaurant chain to hold from buy based on valuation. He kept his price target at $25.
The stock’s jump Tuesday, part of a general gain for meme stocks, put its valuation at a level that already reflects the target price, he said.
To be sure, O’Cull said he remained “constructive toward the company’s fundamental outlook.”
Meanwhile, last week, Jeff Marks, senior portfolio analyst at Action Alerts PLUS, and Chris Versace, a RealMoney contributor, explained last week on TheStreet.com how they avoid the sometimes damaging investing philosophy of fear of missing out. That philosophy of FOMO has boosted meme stocks.
