Diamond hands have gone 10-2 on the steering wheel on yet another stock.
This time the target of communities like /r/WallStreetBets was Atossa Therapeutics (NASDAQ:ATOS), a Seattle-based biotech company specializing in clinical-stage breast cancer treatments. The stock price was trading at $8.06 at 9:30 AM market time today, Friday June 25th. By 10:40 AM, it was trading at $9.72. On Monday, June 21, the stock was at $5.60. This morning saw Atossa’s stock go up 72% since Monday.
About the Stock – (NASDAQ:ATOS) up 176.28% in past month
Atossa Therapeutics Inc. is a clinical-stage pharmaceutical company based in Seattle specializing in delivery methods for the treatment of breast cancer and COVID-19. The company currently has a breast cancer drug under development called Endoxifen. The company is also working to develop AT-H201, to improve lung function in patients hospitalized from COVID-19 with moderate to severe symptoms, as well as AT-301, a nasal spray for COVID-19 patients at home.
Though the praise, (or blame depending on how you look at it), shouldn’t be fully on retail investor Redditors. According to Fool.com, Analyst Edward Woo (Ranked #598 of 7,564 Analysts on Tipranks) essentially issued a buy rating for Atossa (NASDAQ:ATOS).
Thank you Reddit. It seems that the Hodlers are at it again. A reddit post that’s four hours old as of now titled $ATOS cracks $1B market cap. Now, the company is expected to be put onto the Russell 2000 index, and one commenter believes the share price will increase even more due to passive index fund purchases. He’s not wrong either! Atossa (NASDAQ:ATOS) did rally in anticipation of the Russell 2000 listing.
You can also see the free-thinking attitude and open discussion style that Reddit facilitates when it comes to stocks. When discussing fundamental analysis and technical analysis, there is a large disconnect between various traders frequenting Reddit. Some buy 100 shares just ‘for the lols’ and stick it to Wall Street and hedge funds. Others put in substantial investments and those whales are key to the market fluctuations we are seeing. Ultimately, several factors play a role in the rise (and fall) of a meme stock and it varies all the time. Gamestop Corp (NASDAQ:GME) was the first meme stock because WallStreetBets users decided to counter shorts of the stock by hedge funds. There are even trends to move away from meme stocks.
SEE ALSO: When Reddit Set Their Sites on Cannabis
So Why did Atossa (NASDAQ:ATOS) get memed? It’s actually quite the task to try and figure out, but one thing is certain: A new subreddit called r/AtossaThrapeutics now exists, and it’s rife with antogonism towards r/WallStreetBets! The users therein are furious at their comrades who started to talk about Atossa (NASDAQ:ATOS) on WallStreetBets. Why is that? Some of them see it as a good investment. In other important news about r/WallStreetBets, one comment below says that tickers under $1 billion market cap are banned automatically. WSB’s rules don’t verify this, but is in line with their ban on discussing any penny stocks.
Disclaimer: This post is for informational use only. This is in no way a suggestion or promotion of any stock or security mentioned in this article, or any article on StreetSignals. DO NOT invest solely based on social media trends. The purpose of this post is purely informative and it is not investment advice. Nothing in this post should be taken as investment advice. The author and StreetSignals have no connection to Attossa Therapeutics (NASDAQ:ATOS) and hold no positions in said stock. No information in this post is intended as an indication of future gains.
Featured Image @ © Sedovukr | Megapixl.com
