After opening with small gains Tuesday morning, the major equities indexes trailed down all day to close with losses ranging from 0.5% to 0.8%. Wednesday morning saw the indexes flat or up a bit again.
Among the most discusses stocks on the WallStreetBets subreddit over the past 24 hours is IronNet Cybersecurity Inc. (NYSE: IRNT), maker of a network traffic analysis platform to detect and defend against cybersecurity threats. The company came public in late August through a SPAC merger and closed up by more than 30% on its first day of trading. Since the IPO, shares are up 85%, including a 20% jump on Tuesday.
IronNet announced second-quarter financial results Tuesday that were undistinguished. However, cloud-based subscription revenue jumped 65% year over year and now accounts for 60% of the company’s total revenue. The company said it expected subscription revenue to reach $75 million in the fiscal year. For the first two quarters of fiscal 2022, total revenue is around $12 million. That’s a pretty encouraging forecast.
As of August 31, about 26% of IronNet’s shares are sold short, but investors appear to be expecting a squeeze, likely due to the company’s rosy forecast. The stock traded up about 14.5% in Wednesday’s premarket to $26.70, in a post-IPO range of $9.36 to $29.96.
The other meme stock posting a double-digit gain on Tuesday was Camber Energy Inc. (NYSEAMERICAN: CEI), which added 13.7% to its share price for the day. Trading volume of more than 277 million shares was more than five times the daily average. The company had no news.
Aterian Inc. (NASDAQ: ATER) posted the biggest drop in Tuesday’s trading, down 39% to close at $10.96. Trading volume of 104 million shares was about eight times the daily average of 13.6 million. The stock did not appear to be getting much attention on social media, but the share price bounced wildly.
Another stock dropping by double digits on Tuesday was Support.com, which has completed its reverse merger with Greenidge Generation Holdings Inc. (NASDAQ: GREE) and begins trading Wednesday morning under the new stock symbol. The share exchange of one new share of Greenidge for about six shares of Support.com disappointed investors, who took the stock down 38% on volume of 50 million shares. Support.com closed at $11.80. Keep an eye open for Greenidge’s opening bid.
Vinco Ventures Inc. (NASDAQ: BBIG) closed down 17.1% on Tuesday at $7.95. That is the lowest closing price in more than two weeks. The company had no news and saw little discussion on social media.