'Meme stock' rally pauses, Redditors focus on biotech stocks


June 14 (Reuters) - Small-time stock traders turned their attention to the biotech and healthcare sectors on Monday, lifting shares of some by as much as 10%, while the rally in stocks that were favored in recent weeks appeared to fade.

Of the top 10 stocks trending on trading-focused social media site Stocktwits, vaccine developers Novavax Inc NVAX.O and Vaxart Inc VXRT.O were in the third and fourth spots, respectively, with message volume on Vaxart up 9.7% and nearly 97% of them reflecting a positive sentiment.

Shares of Novavax jumped 10.3% in premarket trading as the company also reported late-stage data from a U.S.-based clinical trial showing its vaccine was more than 90% effective against COVID-19 across a variety of variants of the virus.

Individual traders on forums such Reddit's WallStreetBets have acted in concert this year to bid up shares of heavily shorted stocks, triggering a phenomenon known as a "short squeeze", which pushes up stock prices even more.

Video game retailer GameStop Corp GME.N and cinema operator AMC Entertainment AMC.N, which were at the center of the so-called "meme stock" rally this year, have seen their share price soar more than 1,100% since the end of December.

AMC shares were up 3.5% in early deals after jumping more than 300% in the past three weeks. GameStop shares rose 1.1%, while Vaxart was up 1.6%.

Shares of gaming equipment maker Corsair Gaming Inc CRSR.O jumped 12.5%. The company - which has a short interest of 18.25% of free float, according to Refinitiv data - was the top trending stock on Stocktwits, with a 26.9% jump in message volume.

(Reporting by Sagarika Jaisinghani and Aaron Saldanha in Bengaluru; Editing by Shinjini Ganguli)

((; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics

US Markets Stocks

Latest BioTech Videos

    How Psychedelics Could Be an Effective Treatment for Mental Health Problems

    Pasithea Therapeutics CEO Dr. Tiago Reis Marques discusses how psychedelics could be an effective treatment for mental health problems.

    Jul 19, 2021


    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at and via Reuters TV.

    Learn More