First Gamestop, now Rocket: Gilbert company stock surges 70% on Reddit bump

March 03, 2021, 8:24 AM

The latest meme stock has a local tie. (Photo: Facebook).

Dan Gilberts' Rocket Companies are getting the now-famous WallStreetBets boost as participants in the subreddit take on short sellers.

Business outlets report Rocket shares rallied more than 71 percent Tuesday on no apparent news. The stock has among the highest percentage of short bets placed against it, which sparked interest from the online group that prompted January's high-profile surge in Gamestop.

CNBC reports of Rocket:

Nearly 40% of its available shares are sold short. ... That makes it a classic target for meme-obsessed investors, who this year have been storming together into shares and call options of heavily shorted companies in order to squeeze out short sellers. 

The news means a potential windfall for Gilbert. Bloomberg reports that as of Tuesday's closing bell, he was worth another $25 billion.

His majority stake in Rocket, which closed the day up 71%, comprises 93% of his wealth. It's the second massive jump in net worth for Gilbert over the past year.

Rocket Companies went public in August at $18 per share, short of earlier expectatons. The stock closed Tuesday at just under $42 per share.

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