Reddit ignites meme stock resurgence, further signs of ‘bull market in everything’

Reddit became synonymous with the meme stock rally of 2021. Now, its stock has become a meme itself.

Reddit stock (RDDT) popped more than 12% on Tuesday and has rallied more than 30% since its initial public offering last Thursday. Some reports have pegged an uptick in options volume to the recent surge in shares.

The meme resurgence spans beyond one popular IPO. GameStop (GME), the original meme stock, just had its best one-day rise in a year. The Donald Trump-tied media SPAC finally debuted under the name Trump Media and Technology Group and ticker symbol DJT. That stock was up more than 50% during Tuesday’s trading session alone.

“We are in a very exuberant market,” Interactive Brokers chief strategist Steve Sosnick told Yahoo Finance. “We’re in a very momentum-driven market. One of the hallmarks of momentum is it becomes far less about fundamentals. It becomes all about price movement and much less about about valuation. Meme stocks are the epitome of that.”

Beyond those popular names, other signs of a risk-on market are flashing too.

Bitcoin (BTC-USD) has pressed near $71,000 per coin. MicroStrategy (MSTR), a stock that more closely follows the price of bitcoin than typical fundamental drivers like earnings, is now up more than 200% year to date after a massive rally on Monday.

And the commodities trade is ripping too, with gold (GC=F) up 7% in the last month and sitting near an all-time high. The price of cocoa (CC=F) has risen nearly 50% over the same time period.

To Charles Schwab chief investment strategist Liz Ann Sonders, these moves are signs of “froth” in the market.

“It’s sort of the bull market in everything theme recently with the exception of maybe bonds,” Sonders said. “It’s in crypto, it’s in precious metals, it’s in certain other commodities. It’s in some of the meme stocks, again, and it is [all part] of the mix.”

CEO of Reddit Steve Huffman stands next to Snoo, the mascot of Reddit, at the New York Stock Exchange in New York City, March 21, 2024. (REUTERS / Reuters)

The big moves come as the broader market sits at all-time highs. The S&P 500…

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