Post asking to save burger chain Wendy's goes viral and causes company shares to soar in the US

Facade of a Wendy's restaurant in the USA
AFP
Last week, shares of the North American fast food chain Wendy's rose more than 40%. And part of this growth is linked to the social network Reddit.
Posts went viral in forums linked to the economy on the platform. This is because the company was identified as a good opportunity for recovery after losing 36% of its market value in the last 12 months, according to "CNBC".
Also according to the US news channel, Wendy's became a meme on the wallstreetbets forum with the tag "We need to save Wendy's" (or "We need to save Wendy's", in literal translation).
R/wallstreetbets is a Reddit community, centered on the financial market. Until the last update of this report, the forum had 4.4 million members.
Another factor highlighted as important in the rise in shares was the appointment of Steven Cirulis as the network's new financial and strategy director.
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What is Reddit?
Reddit works as a large online forum, which is divided between several communities (called subreddits).
The platform is one of the most viewed sites in the United States United States.
Parallel with the GameStop case
GameStop, a traditional chain of video game stores with a business model considered obsolete, was the highlight of the United States stock market in 2021, with its market value rising from US$1.3 billion at the end of 2020 to US$22.5 billion the following year.
In a movement orchestrated on a Reddit discussion forum, investors sent the company's shares soaring from US$ 19.26 at the end of December to an impressive US$ 380 at the highest recorded this Wednesday on the New York Stock Exchange (NYSE) - an increase of more than 1,800%.
Members of wallstreetbets decided to buy the company's shares to challenge Wall Street analysts and investors, who predicted that GameStop's shares would lose value in light of the latest results - and who made their investments based on these predictions.
With the mass purchase of GameStop's shares GameStop, the company's shares began to appreciate in value, harming those who bet against the company in the financial market.

Source: G1