Rocket Companies (NYSE:RKT) got a massive boost from retail investors mostly driven by Reddit which claims itself as a front page of the Internet
It gained momentum when Reddit community r/WallStreetBets mentioned this stock as traded short by big firms to make more gains and thus making a repeat of games stop (NYSE: GME)
the Detroit-based fintech company has quietly become America’s largest mortgage originator
and unlike GameStop, it has the potential to grow and having a solid business plan.
The net worth of Quicken Loans Inc. Chairman Dan Gilbert also jumped by more than $25 billion after shares of his Rocket Cos. skyrocketed after getting support from Reddit.
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.
although this also helped with institutional investors in RKT stock to take away the big money and keep their pocket warms
What is r/WallStreetBets as per Wikipedia description
r/wallstreetbets, also known as WallStreetBets or WSB, is a subreddit where participants discuss stock and option trading. It has become notable for its profane nature, aggressive trading strategies, and role in the GameStop short squeeze that caused losses on short positions in U.S. firms topping US$70 billion in a few days in early 2021. The subreddit is famous for its colorful jargon and terms.