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

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

FILE PHOTO: U.S. one dollar banknotes are seen in front of displayed stock graph in this illustration taken February 8, 2021. REUTERS/Dado Ruvic/Illustration

REUTERS: Shares of software firm Alfi Inc fell 10per cent 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 US$14.65 per share by 5:26 a.m. ET after ending Tuesday's session at a record high of US$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 report that Alfi planned to buy back stock as helping to fuel the rally.

Shares of a group of heavily shorted companies including video game retailer GameStop Corp and cinema operator AMC Entertainment Holdings Inc 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 3.85per cent 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, sank 10per cent in premarket trading, extending a 30per cent slide in the previous session after it upsized its stock offering to US$250 million.

GameStop has also cashed in on the Reddit-driven rally in its stock, saying on Tuesday it had raised US$1.13 billion in its latest share offering. Its shares were down 0.3per cent after jumping 10per cent in the previous session.

AMC shares slid 0.8per cent, while other meme stocks Clover Health Investments Corp, ContextLogic Inc and Petco Health and Wellness Co rose between 0.4per cent and 2.4per cent.

(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Shounak Dasgupta)

Source: Reuters


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