Reddit chatter on United Wholesale Mortgage could be big indication of what’s next
Susan Tompor | Detroit Free Press | May 19th, 2021
“Rocket did have its brief Reddit moment back in early March 2021 when it went up over 100% in three days,” said Sam G. Huszczo, a chartered financial analyst in Southfield. “It has since come back down to earth and is now trading at a loss year to date.”
It is hard to say how the situation will play out.
The recent stock price run-up for UWM could be a sign that investors are buying on a dip, shopping for a bargain, said Huszczo, the Southfield financial analyst.
Since its Jan. 22 open at $11.95 a share, UWM is down roughly 29%.
“It could just as likely be people buying what they consider to be an undervalued stock,” Huszczo said.
He added, “There are likely better targets out there for a short squeeze but it’s hard to tell. They benefit greatly from the element of surprise.”