Why ATA Creativity Skyrocketed 951% Today

ATA Creativity Global AACG stock closed over 951% today.

What Happened: ATA shares were buoyed — thanks to discussions on Reddit investor forums WallStreetBets, Stocktwits, and Twitter Inc’s TWTR platform, related to pumping the stock.

AACG from r/wallstreetbets

ATA Creativity stock up sharply — more than 600% — on heavy trading volumes! $AACG #education pic.twitter.com/0h8RepZSiU

— AlphaBronze (@Alpha_Bronze) February 4, 2021

Shares in the Chinese education firm shot up with a volume of over 305.69 million on Thursday. The average volume is 51,862.

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Why It Matters: ATA Creativity released its third-quarter results in November with earnings per share of RMB 0.28 ($0.043) and revenue of RMB 42.22 million ($6.52 million), a gain of 3.9 YoY. 

On Wednesday, Sundial Growers Inc SNDL stock shot up after it was targeted by retail investors. 

Heavily shorted stocks such as GameStop Corp GME and AMC Entertainment Holdings Inc AMC  skyrocketed as r/WallStreetBets pursued a short squeeze, before tanking in the previous few sessions.

ATA Creativity is not on the list of most talked about stocks on r/WallStreetBets, as compiled by Swaggystocks.

GameStop, AMC, Blackberry Ltd BB, Tesla Inc TSLA, and Nokia Oyj NOK are the most discussed stocks on the Reddit forum.

Price Action: ATA Creativity shares closed 951.47% at $14.30 on Thursday and fell 20.44% to $10.09 in the after-hours session.