-Nothing changed overnight’ to make Wendy’s a better bet, trader says as stock sees Reddit interest
-Shares of the fast-food chain surged about 26% to records on Tuesday after a post in Reddit’s popular WallStreetBets forum pitched Wendy’s as “the perfect stock” for the group on account of its signature products and “effective” social media presence.
-It’s the latest so-called meme stock that has captured the group’s interest. The growing list includes GameStop, AMC and Bed Bath & Beyond.
-“I think the reason the Reddit crowd is pushing it up today is because the retail share float is pretty small in Wendy’s, but I can guarantee you nothing changed overnight to change the fundamental story,” Gradient Investments President Michael Binger told CNBC’s “Trading Nation” on Tuesday.
-Though the company has a “decent business model” and can take advantage of the economic reopening, its stock is trading at a notably high price-earnings multiple for just 3% sales growth, he said.