You see, with the stock market, it happens to be a bit of a rollercoaster, in turn. It goes up then down the next day, and then you wake up and find that you have to pay attention to a company that you had never heard of. In the recent past, everyone has been watching Rocket Companies (RKT Stock), the mortgage juggernaut. And guess what, things are just heating up so to speak and their Q2 earnings should be very soon, on July 31 st.
So currently it is really rocking along with RKT Stock that it would have been sky high this last week were you paying attention. Shares bounced more than 7.5 per cent to end Monday at US$15.04. This was not by mere chance, this was the 4th consecutive gain! What is there so exciting? Well, a good number of people in the investment world are preparing to see that Q2 earnings report with some good news.
Only last week, Rocket Companies offered us a somewhat hint, with Q2 revenues being expected to fall between 1.175 billion and 1.325 billion. It sounds like a nice amount of money, yet icy news is there is as follows, their first quarter was not necessarily a hit home run. In fact, they swung to a net loss of 212 million which is rather a large leap into the loss that they experienced compared to the profit of 291 million in the same period compare last year. The amount of revenues also decreased by one quarter as compared to the previous year. So, there is some way anticipating seeing how they have turned things around, whether they have.
Is RKT Stock Riding the Meme Train Once Again?
However, hold on, that is not all that happened that we can call earnings reports or financial forecasts. There is something boiling, something that makes Rocket Companies smell much less, like a traditional mortgage company, and much more like, well, a meme RKT Stock.
Yup, you read it correctly; it is a meme stock. When you scratch your head, you probably recall 2021 when you had regular investors in forums such as Reddit asking themselves why can they not collectively push some of the stocks to force dramatic hikes that would surprise everyone in the market. Remember GameStop? AMC? It seems Rocket Companies is becoming caught up in that same retails investor mania.
As a matter of fact, Rocket Companies was rated the hottest ticker on Stocktwits, a stock-trading platform yesterday on Tuesday. The rumour about RKT there? It sky-rocketed by an incredible 740 percent during the last week! Word on the street is that we might be facing a so-called short squeeze, when a stock bet heavily against (or, in other words, short) starts rising in prices, and those who shorted it have to buy it again to own at least some of it again, which only increases its price.
And the short interest of Rocket is quite high with almost 49 percent of shorts as per the data at Koyfin. The chatter is even on the notorious/wall street bets board of Reddit, and one of its posts goes as far as saying, “Going in on Rocketship.” There is some talkin about bullish!
Its stock has appreciated by almost 20 percent over the past week and get this… it has increased almost 50 percent year to date! This is not the first rodeo in RKT, as in March 2021 the company surged 71% in a single day; it then reversed the price.
The future of Strategic Growth-Beyond the Buzz
In addition to the retail hype, it is also true that people are excited by Rocket, recent large steps. Some of their multi-billion acquisitions include Mr. Cooper and Redfin Corp where analysts (such as Jefferies) are quite positive saying that they are likely to increase their earnings per share (EPS) by an average of 37 percent over the next 2026-27. This actually is a strategic action of Rocket maintaining an enlarged homeownership ecosystem.
Therefore, bringing us even closer to the 31 st day of July, it is not only the institutional investors who are viewing balance sheets. It is also an entire universe of retail traders, who are interested to know whether Rocket Companies really can take off to the stratosphere. Barking because of its sound fundamentals, strategic purchases, or the strength of the internet combined, at least one thing is certain: Rocket Companies is a fine stock to monitor at this very moment.
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