The Reddit-fuelled retail trading frenzy has spread to Europe. Retail investors of the popular online forum pushed the shares of some European companies into the stratosphere. Thus, the stock of Orphazyme, a small Denmark-based biotechnology company, skyrocketed by almost 1,400%.
One trading session was enough for a rapid rise in its shares. The so-called "meme" stocks stirred excitement on the NASDAQ exchange. As a result, the Danish drug company's American depositary receipts (ADRs) turned out to be nearly 15 times greater than before. In the early trade, its shares traded at about $5. At midday, their value reached $77.77, posting an increase of 1,387%. The management of Orphazyme warned in a statement that investors could "lose a significant portion of their investments if the price of such securities subsequently declines". The company noted that it was not aware of any material change in its programs, finances, or operations that could cause such a stock move.
In early summer, there was a sudden flurry of demand among Reddit users. Several companies joined the 'meme stock' trend, including fast-food chain Wendy's and insurance seller Clover Health. On June 8, their shares soared by 19% and 109% respectively. Notably, GameStop and AMC short sellers suffered multibillion-dollar losses amid the Reddit-driven rally in their stocks.
