Reddit-Fueled Penny Stock’s 6,400% Rally Reversing in Sydney
Bloomberg
3 days ago
(Bloomberg) --
The Reddit meme stock fizzle is roiling an Australian penny stock.
IOUpay Ltd., a fintech firm that went into overdrive on a social media-backed retail trading frenzy, has plummeted in the past two months. The stock is set for more declines as the firm’s newly launched buy-now-pay-later services -- which allows customers to purchase goods and then pay for them in installments -- faces intensified competition in Southeast Asia from larger Australian rival Afterpay Ltd., say analysts.
IOUpay had drawn comparisons to U.S. videogame retailer GameStop Corp. after surging 6,400% in the past year as it has been the subject of several discussion threads on Reddit. The Reddit-fueled day-trading crowd turned the first quarter of 2021 into one of the wildest periods of stock market frenzy in modern history. Despite a more than 40% slump since mid-February, IOUpay remains Asia’s top-performing interactive media and services stock over the past year.