Please ensure Javascript is enabled for purposes of website accessibility

Why Sundial, AMC, Blackberry, and Other Reddit Stocks Soared Today

By Joe Tenebruso - Feb 24, 2021 at 7:36PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Get ready for round two of the battle between the bulls and bears.

What happened

Reddit traders are back. After licking their wounds following GameStop's (GME -1.22%) brutal decline from its highs, the Wallstreetbets-led army of individual investors appears to be trying to ignite a new round of short squeezes.

Here's how some of the most popular Reddit stocks fared on Wednesday:

  • Express (EXPR -5.24%), up 41%
  • Naked Brand Group (NAKD), up 31%
  • AMC Entertainment (AMC 2.02%), up 18%
  • Sundial Growers (SNDL -6.98%), up 15%
  • BlackBerry (BB -3.48%), up 9%

So what 

Many investors were infuriated when Robinhood and other brokerages placed restrictions on their customers' ability to buy shares of GameStop and other heavily shorted stocks back in January. Those moves helped end the trading frenzy in GameStop and other popular Reddit stocks, leading to a sharp decline in their prices.

A person is pointing to a digital stock chart that rises, then falls, and then rises again.

Shares of Express, Naked Brand, AMC, Sundial, and BlackBerry rebounded on Wednesday. Image source: Getty Images.

Following heavy criticism from investors and regulators, Robinhood eventually moved to allow uninterrupted trading in GameStop and the other stocks for which it had limited purchases. The popular trading platform said the restrictions were temporarily necessary due to soaring capital requirements imposed by clearinghouses during the trading frenzy. Robinhood subsequently raised several billion dollars from investors to better comply with those requirements should trading volumes increase once again.  

Now what

Well, Reddit traders appear to be gearing up to test Robinhood's newly strengthened capital reserves. With the trading platform likely to be reluctant to impose new buying restrictions due to the backlash it faced last time around, it will be interesting to see how any potential short squeezes will play out with no interference from Robinhood.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GameStop Corp. Stock Quote
GameStop Corp.
$122.86 (-1.22%) $-1.52
BlackBerry Stock Quote
$5.54 (-3.48%) $0.20
Express, Inc. Stock Quote
Express, Inc.
$1.99 (-5.24%) $0.11
AMC Entertainment Holdings, Inc. Stock Quote
AMC Entertainment Holdings, Inc.
$13.65 (2.02%) $0.27
Naked Brand Group Limited Stock Quote
Naked Brand Group Limited
Sundial Growers Inc. Stock Quote
Sundial Growers Inc.
$0.34 (-6.98%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.