Meme Stock Investors Set Their Sights on Uranium
September 14, 2021
Retail investors are looking to turn a radioactive metal into a hot commodity.
Prices for spot uranium oxide have climbed more than 60% since the middle of July, and closed last week at the highest level since 2014.
Members of Reddit’s WallStreetBets forum, the group at the heart of the meme-stock frenzy earlier this year, have been making bullish arguments for uranium prices and the related mining companies’ stocks.
This fervor has driven the stock prices of several mining companies in Australia and the U.K., some of which have seen price increases as high as 35% recently. Meanwhile, Canadian energy company Cameco has become the third-most-discussed company on WallStreetBets, behind only Apple and Alibaba, according to SwaggyStocks, a website that tracks mentions of ticker symbols on Reddit.
While retail interest may be driving prices recently, they have been trending up for some time. Investors are betting that there will be increased demand for uranium to fuel nuclear power plants as the world tries to reduce carbon emissions.