Reddit Users Now Targeting ATA Creativity, Stock up 950%
After brokers have placed trading limits on highly short squeezed stocks last week, Reddit users have now moved their focus towards Chinese education stocks ATA Creativity Group (NASDAQ: AACG) this week.
Shares of ATA Creativity rallied more than 950% in a single day, thanks to heavy buying trading volume from Reddit day trader’s army. Its daily volume surged to 310m shares compared to the average daily volume of 52K.
Rally is Supported by Pump and Dump Scheme
Reddit and other social media day traders have been working on pump and dump schemes over the last couple of weeks through social media posts. Fortunately, their strategy has worked so far and they turned into new market movers.
Reddit day traders have previously supported GameStop (NYSE: GME) and other highly short stocks to jump more than 1000% since the beginning of this year.
ATA Creativity Group shares also popped due to Reddit user’s strategy of buying and holding. Besides heavy buying, no other catalyst is supporting the upside momentum. However, ATA shares likely to fall once buying interest declines because the rally is not backed by fundamentals and valuations.
ATA Creativity Global offers a wide range of education services consisting primarily of portfolio training, educational travel, overseas study counseling, and other educational services through its training center network.