Wendy's is the Lastest Meme Stock

Wendy's stock is surging this morning after a viral post on Wallstreetbets called for investors to buy up the stock of the struggling burger chain to trigger a short squeeze. So we are looking at another potential meme stock situation here. A short squeeze when a heavily shorted stock starts rising, which forces short sellers to buy back shares to limit their losses. That buying pressure pushes the stock even higher, which forces more short sellers to buy back even more shares, causing the price to go even higher. So, what are the ingredients there for a short squeeze because Wendy's is a about 30% of shares being sold by investors. So Wallstreetbets is now trying to squeeze them. Wendy's stock is up around 25% in pre-market trading as of this morning. And more than 14 million shares have traded hands before the bell, making it more actively pre-market than Micron and Intel. I mean, this company has been struggling lately with shares down 50% in the last year. The company is trying to turn things new. They announced a new CFO and a chief strategy officer yesterday. And they also Reddit traders. So we'll see this one ends and then on top of that, Hertz is selling $300 million in bonds plus doing a $100 million in stock offerings, which dilutes shareholders. So when you combine a weaker outlook and a capital raise this morning, that's not a good combo and shares are down more than 20% at the time of the recording.