UWMC - UWMC Stock: What Is Going on With the r/WallStreetBets Darling?
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The new kids on the block at r/WallStreetBets are at the forefront of a mortgage lender showdown and hope to see a big pay-day tomorrow. UWM Holdings (NYSE:UWMC) stock is beginning to rally, thanks to the WSB cosign as well as some business strategizing.
On a recent Facebook Live, UWM’s CEO Mat Ishbia announced it would be cutting ties with brokers who work with close competitors Rocket (NYSE:RKT) or Fairway.
This is a huge revelation by UWM. Ishbia claims that the decision was to protect brokers from the other two lenders, who he accuses of trying to cut brokers out of the equation by poaching loan officers. However, this is putting brokers in a tough place, forcing them to decide between lenders when before they had choices.
Yesterday saw too a major jumbo product launch by UWM, a response to a similar product launch by Rocket back in February. In essence, the product hopes to bring brokers to its side of the UWM-Rocket conflict by offering highly competitive rates. The announcement is seeing an increase in UWMC stock this morning, with shares up as much as 5%.
r/WallStreetBets Predicts UWMC Stock Gains
All this being said, r/WSB is seeing potential in UWMC stock for different reasons. The subreddit has had its eyes on the company since the Facebook Livestream and have seen the squeeze potential when RKT stock shot to the moon at the beginning of March after taking on short-sellers.
One user posted an in-depth analysis of UWMC and its 140,000-plus call options set to expire tomorrow at $10 a share. The trading fanatics believe that if UWMC stock reaches $10 by tomorrow, and these calls are exercised, prices will go to the moon. Could the jumbo product launch be what puts the share price over that benchmark?
Investors should keep an eye on UWMC through the weekend. Correctly predicting this price explosion would just further cement r/WSB as a force to be reckoned.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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