There have been a number of high-profile stock mixups in the past that have led certain penny stocks to skyrocket in a short amount of time before dying back down. One such stock generating an incredible amount of interest today is Radient Technologies (OTCMKTS:RDDTF). Indeed, shares of RDDTF stock are up more than 4,900% on the same day as the Reddit (NYSE:RDDT) initial public offering (IPO).
That’s right, the IPO that has brought RDDT stock and Reddit to market has led to a fat-finger trade that has sent shares of this penny stock to the stratosphere. Valued at around $2 million for most of the past year, Radient Technologies’ market capitalization last sat just shy of $1 billion today, suggesting someone made a mistake.
Let’s dive into what to make of this mixup for investors following the Reddit IPO today.
RDDTF Stock Surges on Reddit IPO Day
Reddit’s IPO has certainly been met with some incredible enthusiasm, with RDDT stock surging more than 40% on its first day as a public company. This move represents the kind of outsized attention an IPO of this size was bound to see, although the fact RDDT is trading this much higher may be a surprise to some.
So, this trade for Radient Technologies stock appears to simply be a mixup between some trader placing a trade for RDDT stock at multiples higher than it was worth (it was only a trade for 294 shares, and since no other shares have traded hands since this writing, it appears the stock isn’t moving at this price).
This isn’t the first time we’ve seen this. Previous examples of fat-fingered trades include investors piling into Signal Advance (OTCMKTS:SIGL) following a tweet from Tesla (NASDAQ:TSLA) CEO Elon Musk to “use Signal” and investors bidding up AMC Networks (NASDAQ:AMCX) stock following the 2021 meme stock rally seen in AMC Entertainment (NYSE:AMC).
It’s also not going to be the last such example. For now, I think this move in Radient Technologies is one most investors can brush off, with plenty of other stocks seeing large moves that may be sustainable. I’d expect to see RDDTF stock move lower toward where it has been trading for most of the year in short order.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
