Mortgage firm Rocket Company “no reason to surge”
New target of ants who enjoyed the short selling attack
Inside the stock exchange in New York, USA. Reuters Yonhap News
With the US GameStop stock price turning weak, the stock price of Rocket Company, an online mortgage (home mortgage) company, surged more than 70% on the 2nd (local time).
The Rocket Company’s stock price on the New York Stock Market closed at $41.60 per share, up 71.19% from the previous day. This is the highest price since the IPO in August last year. As a result of a short surge, measures were taken to suspend transactions several times during the day.
On Wall Street, the Rocket Company is evaluating it as a’second game stop’. This is because individual investors started collective buying and raised prices in a situation where there was no new good news that could affect the market. The Rocket Company has recently been the target of intensive attacks by short selling agencies.
The stock price of Rocket Company, an online mortgage handling company in the United States, ended sharply on the 2nd (local time).
On this day, a post saying “Let’s go all-in to Rocket Company (which has concentrated short selling)” was posted on the stock discussion room’Wall Street Betz’, which is often visited by individual investors, and CNBC reported that there were about 1,700 comments in an instant.
In the case of GameStop, when individual investors intensively bought, short-selling institutions had no choice but to go for short covering (a buy transaction to repay the balance balance) to reduce losses, which acted as a factor that raised the stock price.
Wells Fargo analyst Donald Pandetti said, “The Rocket Company stock price (such as Gamestop) reflects the power of social media as seen in other stocks. The company’s performance is improving, but it is not enough to explain the stock price spike.”
Unlike the Rocket Company, GameStop shares on the day ended at $118.18, down 1.10%.
New York = Correspondent Jae-Gil Cho [email protected]
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