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Shares of a small Denmark biotechnology company surged as much as 1,387% in US trading hours Thursday as chatter about the stock jumped on Reddit’s Wall Street Bets.

Orphazyme, which is researching treatment for rare diseases, closed the day 302% higher in the US. In Denmark Friday it continued to rally as much as 88%, according to Bloomberg data. 

On Thursday, the stock had about 450 mentions on the Wall Street Bets subreddit, making it the eighth-most mentioned company for the day, Quiver Quantitative data show. By comparison, AMC Entertainment had about 1,400 mentions and came in second.

Even so, the stock fell out of popularity on the subreddit Friday. On another thread, r/Stocks, several Redditors, confused at the stock move, questioned if it was a hedge-fund pump and dump. The company’s American Depository Shares fell more than 50% in early morning trading Friday. 

In a statement about the share surge, the Copenhagen, Denmark-based company said it’s not aware of any  material change in its programs, finances, or operations that would explain the stock move.

“Investors who purchase the company’s ADS or shares may lose a significant portion of their investments if the price of such securities subsequently declines,” the statement said. 

Per Hansen, an investment economist at Nordnet in Copenhagen, told Bloomberg there’s not a logical explanation for the move, adding that GameStop and AMC aren’t the only culprits of “strange, sudden, and inexplicable” price developments.

Meme stocks have seen a surge of interest in recent weeks amid renewed interest in movie-theater chain AMC Entertainment. As of June 9, retail traders had poured $1.27 billion into meme stocks over two weeks, matching the GameStop-craze inflows from earlier this year. 

This time around, the frenzy has expanded from meme-stock classics like GameStop, AMC, and BlackBerry, and extended to new and …read more

Source:: Business Insider

      

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