Wendy's Is Among the Newest 'Meme Stocks'

Shares jumped 24.9% Tuesday
By Newser Editors and Wire Services
Posted Jun 8, 2021 3:35 PM CDT
Investors Eye New Batch of 'Meme Stocks'
The Federal Hall statue of George Washington overlooks the New York Stock Exchange, Monday, June 7, 2021.   (AP Photo/Richard Drew)

Major indexes closed mostly higher on Wall Street Tuesday, thanks largely to gains in a handful of Big Tech companies. Small-company stocks continued to outpace the rest of the market, while investors’ attention turned to huge gains in a new batch of "meme" stocks favored by online investors, including Wendy’s and Clover Health. The S&P 500 was nearly unchanged, while the tech-heavy Nasdaq rose 0.3% and the Dow Jones Industrial Average fell 0.1%. Fastly, an Internet cloud services provider, rose 10.8% after the company said it had addressed an internal problem that caused dozens of websites around the globe to go down briefly.

Wendy's jumped 24.9% as it seemingly joined a list of companies that have gained the attention of a group of highly active individual investors, the AP reports. Clover Health Investments soared 68.8%. Other companies that have seen their stock values soar and fall sporadically include AMC Entertainment, Blackberry, and GameStop. A variety of companies that rely on direct consumer spending made solid gains. Domino’s Pizza rose 1.5% and Gap gained 3.2%. Industrial stocks also ticked higher. Energy companies rose along with the price of crude oil. Those gains were kept in check by falling health care and communication stocks. Banks recovered from an earlier slide but remained weighed down as bond yields, which they rely on to charge more lucrative interest rates on loans, slipped.

(More stock market stories.)

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