That zany trading frenzy in GameStop shares now seems focused on a Detroit startup, Nick Manes of Crain's Detroit Business reports:
The army of online investors that have pumped up shares of GameStop Corp. in recent weeks appear have a new object of their affection: Detroit-based Rocket Companies Inc.
The parent company (NYSE: RKT) of billionaire Dan Gilbert's mortgage lending business Rocket Mortgage has seen its stock surge in the last few days — including more than 20 percent Tuesday morning — as users of the Wall Street Bets channel on Reddit have begun pumping up the stock. The stock was trading at about $30 per share mid-day Tuesday.
Rocket Companies, like beleaguered retailer GameStop (NYSE: GME), has significant interest from short sellers, or investors who bet that the share price of a particular stock will go down. Short sellers, typically professional investors, have become something of an enemy to the Reddit users, who are generally considered retail investors.
Shares were up over 60% as the stock market was about to close trading at 4 p.m. Tuesday.