Rocket Companies Short Squeeze Gives $25B Single-Day Boost To Dan Gilbert's Wealth

Rocket Companies Short Squeeze Gives $25B Single-Day Boost To Dan Gilbert's Wealth

Photo by Steve Jennings on Wikimedia

Rocket Companies Inc (RKT) founder Dan Gilbert’s wealth got a $25 billion booster on Tuesday as the holding company gets the attention of retail investors on Reddit’s r/WallStreetBets, according to Bloomberg Billionaire’s Index.

What Happened: Gilbert, Age 59, has moved up 19 spots to No. 16 on the index that tracks 500 of the world’s richest. 

A large chunk of Gilbert’s fortune, 93% to be precise, is comprised of his stake in Rocket, reported Bloomberg.

Why It Matters: The one-day jump in Gilbert’s wealth is the largest so far in the year, noted Bloomberg.

As of press time, Detroit-based Rocket Companies with subsidiaries such as Rocket Mortgage and Quicken Loans was the most discussed company on WallStreetBets, according to SwaggyStocks data.

WallStreetBets investors previously carried out short squeezes in the stocks of GameStop Corp (GME), AMC Entertainment Holdings Inc (AMC), Nokia Oyj (NOK), BlackBerry Ltd (BB), and others.

Rocket reported 162% revenue growth and 350% growth in net income for the fourth quarter, which beat analyst estimates. The company’s shares have shot up since last Friday.

S3 Partners data indicates the Rocket has currently $1.2 billion in short interest — making it one of the most shorted stocks in the market. 

Price Action: Rocket shares traded nearly 8.2% lower at $38.20 in after-hours trading on Tuesday after shooting up almost 71.2% in the regular session.

 

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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