Speculators wary of the SPAC merger and initial public offering in shares of DJT and Reddit (RDDT), respectively, are mystified. Trump Media and Technology (DJT) stock added 16% on Tuesday. It traded to a breathtaking $80.00 intraday before closing at $57.99.
Chances are exceptionally high that DJT stock would fall as the short squeeze (on a 10.97% short float) ends. Still, traders should take advantage of the price swings to maximize day-trading profits.
Reddit is another renegade winner. Shares gained 8.88% yesterday, closing at $65.11. It traded as high as $73.50 on Tuesday at 9:45 a.m. The site is the home of the meme trades during the pandemic (late 2019 through 2022). Redditors would post entertaining memes promoting stocks. That included BlackBerry (BB), Nokia (NOK), and of course, GameStop (GME).
Reddit’s IPO should improve brand awareness to the general public. It would lead to higher user growth and daily user activity.
In China, Alibaba (BABA) abandoned its plans to IPO Cainiao on the Hong Kong Stock Exchange. Instead, it will spend $3.75 billion to buy shares in the unit. The firm decided to withdraw the listing of its logistics subsidiary. It likely believed the stock market did not appreciate the value of Cainiao. Instead, Alibaba will maximize value by buying the firm and buying back BABA shares.
