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Jim Kramer said Tuesday that retail investors on Reddit are “spreading their wings,” citing discussions about r/WallStreetBets proving the case for fast-food chain Wendy’s Co (NASDAQ:WEN), CNBC reported.
What happened: The TV personality dedicated a Reddit post by user Chillznday explaining why Wendy’s is the perfect stock for the WallStreetBets, or WSB, subreddit.
Chillznday cited a new summer salad, Wendy’s social media post that includes memes, and “Chicken Ties” as some of the factors that made the stock a perfect fit for WSB.
The Reddit poster also touched on the technical aspects of Wendy’s stock and mentioned a low float of $17 million, of which 4-10% is short. According to Chillznday, selling will increase because it is a “relatively predictable stock.”
Wendy’s shares are up 25.85% in the regular session on Tuesday and are up another 4.78% in after-hours trading to $30.25.
SEE ALSO: Is Jim Kramer teasing a short squeeze behind meat? Making sense of his confusing tweets
Why it matters: Cramer notes that appreciation in Wendy’s stock has been driven by Chillznday and some other anonymous publications.
“I want you to forget the analysts now. The person in charge of Wendy’s is Reddit user Chillznda,” Kramer said, according to CNBC.
The analyst also noted that the WSB crowd is “spreading its wings, even in a favorite like Wendy’s with a very short position.”
SEE ALSO: Is Wendy’s Next Reddit Rally Stock?
Wendy’s move, according to Cramer, is a departure from the brief pressures that have been the focus of WSB and that have sent stocks such as GameStop Corporation (NYSE:GME), BlackBerry Ltd. (NYSE:BB) and AMC Entertainment Holdings Inc (NYSE:AMC) soar.
Cramer said the methodology for evaluating stocks by the new class of investors is important.
“If enough people with enough money start valuing stocks differently, their new metrics are also important, even if you think they are silly,” said the former hedge fund manager.
WSB investors are broadening their horizons, and another stock that has emerged as a new favorite of Reddit investors this week is Clover Health Investments Corp (NASDAQ:CLOV).
READ NEXT: Wall Street continues to bet on AMC stocks but looks further than short selling: Report
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