Exela Technologies (XELA) – Get Report, Powerbridge Technologies (PBTS) – Get Report and other lesser-known companies including Verb Technology (VERB) – Get Report, Borqs Technologies (BRQS) – Get Report and BSquare (BSQR) – Get Report all traded higher Wednesday amid continued touting on messaging platform Reddit as meme stocks ripe for additional “to the moon” gains.
Exela shares were up 61% in premarket trading after having jumped 59% on Tuesday, with more than 400 million shares changing hands, well above the 12-month daily average volume of under 7 million. The stock has gained 88% year to date.
Powerbridge Technologies, meantime, was up more than 33% in premarket trading after doubling on Tuesday, when 40.8 million shares changed hands, substantially above the 12-month average of around 560,000.
Both companies were part of the dialogue taking place on various sub-Reddits, messaging platforms that retail traders have gravitated to to chat about public companies they feel they can collectively bid higher and make a quick profit from.
Exela and Powerbridge along with Verb, Borqs, BSquare, UTStarcom (UTSI) – Get Report and Inpixon (INPX) – Get Report were among those being mentioned on sub-Reddit r/RobinHoodPennyStocks as well as on StockTwits.
TheStreet founder Jim Cramer had a direct response to at least one meme stock – Marin Software (MRIN) – Get Report – whose shares were down 25% in premarket trading Wednesday after having gained more than 900% since June 24.
“Marin Software volume is a mockery of a sham,” Cramer said on Twitter.
‘To the Moon’ Rating?
Real Money contributor Timothy Collins noted in his column on Tuesday that the meme-stock frenzy in general – and calls of “To the Moon” for the likes of GameStop (GME) – Get Report, AMC Entertainment (AMC) – Get Report and even meme-currency Dogecoin – were arguably a clearer signal than the often opaque and complex way Wall Street analysts tout stocks.
“What exactly does ‘To the Moon’ mean?,” Collins asked in his column. “I’m guessing ‘To the Moon’ ranks up there with ‘Strong Buy’ or ‘Conviction Buy.’ Maybe we add ‘To Mars’ or ‘To Saturn’ as an even higher rating.
“But the point is Wall Street has been arbitrary for years,” Collins said. “We can’t even have a standard rating system. Is it ‘Neutral’ or ‘Hold’? And really, do I want to hold something that is only in the middle of your range? No.
“The system should be ‘Buy’ or ‘Sell.’ That’s it. Black or white. Own or don’t own. But we live for the arbitrary,” said Collins. “It sells. It makes headlines. It sounds smart, sophisticated, and educated.
“In reality, it’s no better than double-secret probation. You’re either on probation or you’re not, just like you’re either a bull or a bear.”