- Shares of Rocket Companies soared over 60% on Tuesday amid a recent spike in chatter around the company on the Wall Street Bets subreddit.
- In the past 24 hours, two users have posted screenshots of how much they individually invested in the company. Both have received thousands of upvotes.
- Another post, however, reiterated that anything other than GameStop is a distraction.
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Shares of Rocket Companies soared over 70% on Tuesday to their highest point since debuting in public markets in August 2020, amid a recent spike in chatter around the company on Reddit’s Wall Street Bets forum.
In the past 24 hours, two users have posted separate screenshots of how much they individually invested in the company. Both have received thousands of upvotes. Another post, however, reiterated that anything other than GameStop, including Rocket Companies, is a distraction.
The Detroit-based holding company has a high short interest, at nearly 40% of available shares, according to FactSet. It is also among the top candidates to be shorted by hedge funds, CNBC reported.
“Rocket’s rally today is demonstrative of the influence and staying power of the new market contingency of retail investors. After the Q4 earnings call, which announced a $1.10 special dividend and $1B buyback program, WallStreetBets users rushed in,” William Callewaert, a portfolio manager for a tech financing firm said, referring to the special dividend the company announced last week.
Last week, retail traders on Reddit reignited the GameStop trade, sending shares up over 200% during the week, though the rally failed to generate the momentum seen last month.
Rocket Companies reported fourth-quarter earnings last week that beat expectations. Increased adjusted revenue was at $4.8 billion, up 162% year-over-year, while net income grew to $2.8 billion, up 277% year-over-year. Increased Adjusted net income, meanwhile, ballooned to $2.3 billion, up 350% year-over-year.
Shares of Rocket Companies traded at $37 at 2:25PM ET on Tuesday.