Brokerage Firm Siebert Soars as Reddit Feed Targets Another Short Squeeze
Shares of Siebert Financial (SIEB) – Get Report spiked Friday after the brokerage firm became the latest stock to attract the attention of ordinary investors prompted by a Reddit message board called WallStreetBets.
Shares of Siebert at last check traded at $9.92, more than 2 1/2 times Thursday’s close at $3.71. At the high of Friday’s trading, the stock had quintupled to $18.50.
Siebert, which does retail brokerage business through its Muriel Siebert subsidiary, said that it has not released any news on Friday, Dow Jones reported.
The frenzied trading that started on Jan. 25 has catapulted valuations of companies like videogame retailer GameStop (GME) – Get Report, theater chain AMC Entertainment (AMC) – Get Report and security-solutions provider Blackberry (BB) – Get Report, among others.
WallStreetBets has been trying to collectively push shares of these companies higher in a bid to force hedge funds and other large investors to abandon their short positions — bets that stock prices will decline — in those companies.