Alfi Inc shares set to fall from record highs, 'meme stock' Torchlight sinks

Meta Materials

23/06/2021 10:42

June 23 (Reuters) - Shares of software firm Alfi Inc  ALF.O 
fell 10% in early deals on Wednesday after more than doubling in
value in the previous session, in a move evocative of the
so-called "meme stock" frenzy that has gripped equity markets
this year.
    Alfi's stock was trading at around $14.65 per share by 5:26
a.m. ET after ending Tuesday's session at a record high of
$16.29, and was again among the most heavily traded stocks
before the bell.
    Some social media users and one portfolio manager on Tuesday
cited a Benzinga.com report that Alfi planned to buy back stock
as helping to fuel the rally.  urn:newsml:reuters.com:*:nL2N2O41W9
    Shares of a group of heavily shorted companies including
video game retailer GameStop Corp  GME.N  and cinema operator
AMC Entertainment Holdings Inc  AMC.N  have seen wild swings
this year in a phenomenon dubbed the "meme stock" rally that has
been driven by small-time traders on online discussion forums.
    Although short interest in Alfi last stood at 3.85% of free
float, according to Refinitiv data, the company was among the
top 10 trending stocks on trading-focused social media site
Stocktwits, a platform commonly seen as a measure of interest
from retail investors.
    Another retail darling, Torchlight Energy Resources Inc
 TRCH.O , sank 10% in premarket trading, extending a 30% slide
in the previous session after it upsized its stock offering to
$250 million.  urn:newsml:reuters.com:*:nL3N2O42M6
    GameStop has also cashed in on the Reddit-driven rally in
its stock, saying on Tuesday it had raised $1.13 billion in its
latest share offering. Its shares were down 0.3% after jumping
10% in the previous session.
    AMC shares slid 0.8%, while other meme stocks Clover Health
Investments Corp  CLOV.O , ContextLogic Inc  WISH.O  and Petco
Health and Wellness Co  WOOF.O  rose between 0.4% and 2.4%.

 (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by
Shounak Dasgupta)
 ((sagarika.jaisinghani@thomsonreuters.com))