Shares of the American branch of the tiny Danish biotechnological company Orphazyme sharply soared in price almost 1,400 percent at the barking in the United States, Bloomberg writes. Local investors and analysts could not find explanations to such a cost increase.
Orphazyme itself claims that the concept has no reason for such a rapid growth. When the bidding began in Copenhagen, the paper went up by 76 percent. The company asked investors not to succumb to common madness.
The only reasonable explanation, according to the economist of the Copenhagen Broker Nordnet Per Hansen, would assume that their own “shares-memes” appeared in Denmark. So in the media called the paper of those companies that managed to achieve growth on American stock exchanges due to the support of retail investors from the Reddit social network. “Sometimes there is no logical explanation for what is happening on the stock market. The situation with the prices of ORPHAZYME shares is an example,” Hansen said.
ORPHAZYME shares were raised by 1387 percent, an increase in 302 percent to the closure of trading in the USA. The company reported that they could not name any changes in their work, which could lead to such volatility.
A noticeable example of unexpected stock growth in the United States has become a rise in price of AMC Entertainment Holding paper: its capitalization reached $ 31.3 billion due to the efforts of the “Army of Retail Investors” with Reddit. Their actions helped to rise in price and other companies, and the situation led to serious losses for some investment funds.