A top-voted tongue-in-cheek post on r/WallStreetbets insinuated that the participants of the Reddit forum got “suckered into buying” shares of Petco Health and Wellness Company Inc WOOF due to a "botnet."
What Happened: The post primarily focused on an April deal of Amazon.com, Inc's AMZN with Clean Energy Fuels Corp CLNE, under which the latter will provide low and carbon renewable natural gas or RNG to the e-tailer.
Reddit user NrdRage seemed to suggest that the WSB crowd got “distracted” by Petco and “FOMO'd into some losses.”
The user explained in the post the terms of the deal under which Clean Energy issued to Amazon a warrant to purchase up to 53,141.755 shares of its stock, pointing out that under the deal Amazon would never be allowed to own more than 5% of Clean Energy at any given point.
“Obviously, [Amazon] is going to want more than the $13.49 a share they're paying, which means it's in their best interests to see to it that $CLNE is worth as much as possible,” said the post.
On Wednesday, Petco shares closed 17.86% higher in the regular session at $28.05, while CLNE shares closed 3.43% higher at $11.17. CLNE shares rose another 2.15% to $11.41 in the after-hours session.
Amazon shares closed 1.11% higher at $3,383.87 on Wednesday in the regular session.
Why It Matters: The poster highlighted the fact that the Jeff Bezos-led company may purchase more fuel from Clean Energy than required as well as gently nudge their distribution partners to opt for RNG as well.
“You're already starting to see some of the results of this, with a deal being worked out between $UPS and $CLNE, completely of their own free will of course, to partner up for RNG contracts,” wrote NrdRage in a sarcastic reference to a recent deal between United Parcel Service, Inc UPS and Clean Energy.
The post that had over 1,800 likes as of press time concluded in a seemingly sarcastic tone, "So there the 'non apes' have it, because I know all you real apes not only already had this figured out, but definitely didn't get suckered into buying $WOOF because a botnet told you to today or paperhanded shares in $CLNE when it dipped 10 cents rather than shooting straight up during the investor meeting after all the non-apes got distracted and FOMO'd into some losses and started creating confusion about what this $AMZN deal actually was by displaying they didn't understand it. Damn non-apes, am I right, um...fellow...ape?'
CleanEnergy and Petco both trended on WallStreetBets at press time with 2,289 mentions and 1,545 mentions each, as per Quiver Quantitative data.
Read Next: Petco Options Traders Bet An Epic Short Squeeze Is In The Cards
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
