At one point Thursday, the major equity indexes traded down by nearly a point. By the end of the day, the indexes closed either with a small gain (Nasdaq Composite up 0.1%) or a small loss (Dow and S&P 500 down 0.2%). Premarket trading Friday was lower by about 0.2%.
IronNet Cybersecurity Inc. (NYSE: IRNT) had another big day Thursday, adding nearly 29% to its share price to close at $41.40, after posting a new 52-week high of $47.50. The company had posted a new high of $32.72 on Wednesday. IronNet had no specific news Thursday, but the run-up in the share price may be cooling off Friday. The stock was trading down by nearly 12% in Friday’s premarket.
Electric vehicle maker Lucid Group Inc. (NASDAQ: LCID) saw a gain of 6.3% on Wednesday to close at $21.17. The company is among the dozen most talked about on the WallStreetBets subreddit over the past 24 hours, largely the result of comments from BofA Securities analysts who initiated coverage of the company with a Buy rating and price target of $30. Lucid’s SPAC combination closed in late July, and the shares began trading at around $25, a level the stock has not seen since. Shares were up by nearly 5% in Friday’s premarket.
SmileDirectClub Inc. (NASDAQ: SDC) was the most talked-about stock on social media Thursday. The stock has added more than 14% in the first four days of this week and was trading up another 9% in Friday’s premarket. A short squeeze is likely driving the increase. Nearly 33% of the company’s stock is sold short, and that level of short interest always draws the attention of some retail investors. The company has had no news this week to support the share price increase.
TMC the metals company Inc. (NYSE: TMC) soared by nearly 24% on Wednesday. The company has only been traded publicly for a week after a SPAC merger closed. As we noted Thursday, the SPAC transaction yielded just $137 million in fresh cash, far below its expected haul of around $600 million. When early backers declined to back the deal, they withdrew $270 million (technically a redemption) in expected cash. Then two more backers declined to participate in a PIPE (private investment in public equity) offering, taking another $220 million or so out of the completed transaction.
That left TMC with a small float, and that is a large target for investors looking for opportunities to drive the price higher. The stock traded down more than 5% in Friday’s premarket session.