What happened
Shares of Wunong Net Technology (WNW 0.34%) were soaring almost 27% higher in morning trading Friday after the Chinese online food retailer was reportedly mentioned in social media chatter.
So what
After the meteoric rise of meme stocks like GameStop (GME 5.01%) and AMC Entertainment (AMC 2.11%), which rocketed skyward after getting talked up on Reddit channels, it's probably not surprising for a stock to spike as traders try to catch lightning in a bottle a second time.
Image source: Wunong Net Technology.
Yet this morning Wunong also filed a notice with the SEC saying it had created a subsidiary last September. It could also be that investors are simply reacting to seeing a notice filed and assuming some deal is being made, particularly after the way the stock behaved after its IPO.
Now what
Wunong went public last year at $5 and saw its stock surge 3,000% in a couple of days (take that, GameStop!) to eventually peak at almost $161 per share before cratering once more. The stock, though, was still up about 300% from its offer price before today's jump.
The movement was enough for the NASDAQ exchange to briefly halt trading in Wunong, at which point it continued its march higher. In the few minutes it's taken me to write this brief, shares are up 83% from yesterday's close.
There's nothing to justify the spike in Wunong Net Technology's stock, and investors would do best to ignore silly gyrations like this.
