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 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 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 3.85% 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, sank 10% in premarket trading, extending a 30% slide in the previous session after it upsized its stock offering to $250 million.

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, ContextLogic Inc and Petco Health and Wellness Co rose between 0.4% and 2.4%.

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

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights


Next In Tech News

No, the Covid vaccine doesn’t have a microchip. How US doctors are fighting misinformation
Kuaishou ends US push by shutting down TikTok clone
Amazon launches free one-day delivery in Brazil amid fierce competition
Iranians fear new bill will restrict Internet even further
Chinese state media soften tone as criticism of gaming continues
Teen, 16, admits to taking upskirt videos of schoolgirls, including one in primary school in S’pore
Tokyo Olympics: A 58-year-old table tennis player is finding online fame as the ‘Shanghai auntie’
Sony posts record Q1 profit on pandemic demand for devices and content
Tencent weighs kids games ban after ‘spiritual opium’ rebuke
Over eight in 10 anti-Semitic social media posts weren’t acted on when reported, research finds

Stories You'll Enjoy