Torchlight energy stock graph is seen in front of the company’s logo in this illustration picture taken June 22, 2021. REUTERS/Dado Ruvic/Illustration

June 23 (Reuters) – Shares of software firm Alfi Inc (ALF.O) fell 10% in early deals on Wednesday after more than doubling in value in the previous session, in a move evocative of the so-called “meme stock” frenzy that has gripped equity markets this year.

Alfi’s stock was trading at around $14.65 per share by 5:26 a.m. ET after ending Tuesday’s session at a record high of $16.29, and was again among the most heavily traded stocks before the bell.

Some social media users and one portfolio manager on Tuesday cited a Benzinga.com report that Alfi planned to buy back stock as helping to fuel the rally. read more

Shares of a group of heavily shorted companies including video game retailer GameStop Corp (GME.N) and cinema operator AMC Entertainment Holdings Inc (AMC.N) have seen wild swings this year in a phenomenon dubbed the “meme stock” rally that has been driven by small-time traders on online discussion forums.

Although short interest in Alfi last stood at 3.85% of free float, according to Refinitiv data, the company was among the top 10 trending stocks on trading-focused social media site Stocktwits, a platform commonly seen as a measure of interest from retail investors.

Another retail darling, Torchlight Energy Resources Inc (TRCH.O), sank 10% in premarket trading, extending a 30% slide in the previous session after it upsized its stock offering to $250 million. read more

GameStop has also cashed in on the Reddit-driven rally in its stock, saying on Tuesday it had raised $1.13 billion in its latest share offering. Its shares were down 0.3% after jumping 10% in the previous session.

AMC shares slid 0.8%, while other meme stocks Clover Health Investments Corp (CLOV.O), ContextLogic Inc (WISH.O) and Petco Health and Wellness Co (WOOF.O) rose between 0.4% and 2.4%.Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Shounak Dasgupta

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/business/alfi-inc-shares-set-fall-record-highs-meme-stock-torchlight-sinks-2021-06-23/

You May Also Like

Samsung bets on Europe 5G orders to grow network equipment business

Samsung Electronics (005930.KS) is banking on Europe to maintain growth momentum in its network equipment business, a senior executive said, as 5G rollout widens and industry leader Huawei Technologies of China focuses on its domestic market.

UK’s Sunak says world is watching as G7 debates tax reform

Britain said the world was relying on a gathering of some of the richest nations to agree reforms to outdated global tax rules, as finance ministers from the Group of Seven started a two-day meeting in London on Friday.

Tesla develops its legal and public relations teams in China

Tesla Inc. (TSLA.O) is hiring managers for its legal and external relations…