Root Inc (ROOT) is most definitely an unusual ticker to be trending on the infamous WallStreetBets forum. However, not long ago, chatter on the ticker unexpectedly spiked causing a splash on the WallStreetBets scene. ROOT didn’t necessarily make any big waves, that’s reserved for the tickers that receive upwards of 500-1,000 mentions per day, but ROOT still had it’s day of fame on the popular forum. Here’s a look at the recent sentiment chart.
What happened on March 25th that caused ticker mentions on ROOT to shoot up from an average of 10-15 per day to all of a sudden hitting 160? After doing my research I can’t really figure out what happened other than the stock price shooting up 11% in one day. Gauging by the delay in sentiment it seems WSB may have been late to the party? “Buy calls on ROOT” one WSBer is heard in the distance.
This is a good example of the “WallStreetBets effect” where a stock will have sharp rises in price leading to WSB “catching on”. When sentiment and popularity peaks, per se, is when the effect kicks into full clear. This is visualized in the chart above where after the final (and massive) spike in chatter, the stock price continue to decline nearly 30% in the following weeks. All I have to say about ROOT is “Pls fly again”