Gamestop – Cameco (CCJ) Stock and Uranium Prices Rise. Reddit Interest Is Growing.
and meme stocks
all made gains early on Monday after generating interest on Reddit’s WallStreetBets forum.
That is nothing new for longtime Reddit favorites GameStop (ticker: GME) and AMC (AMC), which climbed 3% and 2.7% in early trading.
Canada’s Cameco (CCJ), however, the world’s largest publicly traded uranium company, is relatively new to the discussion boards. But there is news around the company and uranium, which is used to fuel nuclear energy.
The stock, which has climbed 60% in just over three weeks amid a uranium price surge, was close to 3% higher in late morning trading. Other uranium stocks also moved higher, including exploration company Uranium Energy Corp (UEC), which was 4% up, and London-listed miner Aura Energy (AURA.LON), which surged 34% on Monday.
Sprott Physical Uranium Trust,
the world’s largest fund holding physical uranium, has been aggressively buying the metal since it launched in July, which has helped drive the price rally. The fund has accumulated close to 25 million pounds of uranium, buying 850,000 pounds in one day last week.
Uranium futures have climbed 40% to $42.50 in just under a month, according to FactSet data.
In a 2019 report, the World Nuclear Association forecast a 26% increase in demand from 2020 to 2030.
A renewed emphasis on climate change of late, following a number of extreme weather events across the world, has brought nuclear energy back into focus in recent months.
It has also caught the attention of retail investors and Reddit users, proving a popular topic on the WallStreetBets forum; another page titled ‘UraniumSqueeze’ currently has more than 13,000 members.
Write to Callum Keown at [email protected]