Business
Volatile Trading in Wendy’s Stock Puts Wall Street on Short-Squeeze Watch
Does it feel like 2021 in here?
Wendy’s shares started the day with a 15% gain, in what appeared to be a short squeeze of the restaurant chain’s stock. But then the stock promptly turned lower, losing all of the day’s gains, which had built on Wednesday’s 26% jump. Shares closed lower 6.7%.
The moves have all the hallmarks of the kind of volatility that made headlines in 2021, when retail investors banded together online to send shares of companies like GameStop and AMC Entertainment soaring—and inflict painful losses on hedge funds that had placed short bets on the stocks. These do-it-yourself investors bought $15 million worth of Wendy’s shares on a net basis yesterday, according to data from Vanda Analytics.
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