Why ATA Creativity Skyrocketed 951% Today

ATA Creativity Global (NASDAQ: 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 (NYSE: 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 (NASDAQ: SNDL) stock shot up after it was targeted by retail investors. 

Heavily shorted stocks such as GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: 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 (NYSE: BB), Tesla Inc (NASDAQ: TSLA), and Nokia Oyj (NYSE: 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.