J.P. Moczulski/Reuters
- BlackBerry shares rallied 10% in pre-market trading as some Redditors sought a new short squeeze.
- The company jumped last week as well amid a broader meme-stock rally driven by retail traders.
- Some Redditors mentioned a $20 share price target for the stock, double its current value.
- See more stories on Insider's business page.
Shares of BlackBerry jumped 10% in pre-market trading Tuesday as Redditors sought a short squeeze in the stock.
About a tenth of all conversations among Redditors hoped for a short squeeze, and another 1% called for a $20 price target, according to HypeEquity data. That would nearly double the share price from Friday's close of $10.07.
Shares of BlackBerry, the legacy telecom company that is now focused on cybersecurity, rose last week as well – jumping 16.8% – amid a broader meme stock rally largely driven by retail traders.
AMC Entertainment, the world's largest movie theater chain, led last week's meme stock rally, more than doubling in price and closing out the week at $26.12 – its highest in years – as it trended on Twitter hashtags and among retail investors on Reddit. Other meme stocks, such as GameStop, Virgin Galactic, and a new one, Beyond Meat, also rallied last week amid renewed interest from retail traders.
Shares of AMC rose again in pre-market trading Tuesday, but some Redditors seemed ready to move onto the next short squeeze, as BlackBerry was the most popular stock stock on the site.
One Redditor, with a long post history and a lot of "karma" on the site, said, "It's not worth buying AMC anymore, that train already passed," and added that, "even BB is a safer choice now, since BB is actually undervalued."
Ontario, Canada-based BlackBerry joined the meme stock trend back in January, when- in retail traders on social media sites such as Reddit picked what they deemed to be undervalued companies and poured into them in an effort to squeeze short sellers. Shares skyrocketed to $25, before declining in the following months.
Short interest in BlackBerry is 9%, according to MarketBeat data, compared to other meme stocks AMC and GameStop, which have a 21% short interest.
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