ATA Creativity (AACG) Stocks Plummet After 951% Surge

2 min read | February 05, 2021 10:26 AM EST | By Kunal Sawhney

ATA Creativity (AACG) Stocks Plummet After 951% Surge

ATA Creativity Global (NASDAQ:AACG, AACG:US)

The stock price surge of ATA Creativity Global, an international educational services firm, was not preceded by any corporate or business-related news from the company. But what did likely pump up the stocks was mentions of the Chinese company on Reddit-based trading forums like WallStreetBets, Stocktwits, etc.

Soon after, AACG stocks also became a prominent topic of discussion on Twitter as its price kept galloping for most of the day.

Reddit-based retail traders became widely known over the last few weeks for their role behind the insane rally of stocks like GameStop, (NYSE:GME, GME:US), BlackBerry (TSX:BB), etc. Earlier this week, stocks of cannabis producer Sundial Growers Inc (NASDAQ: SNDL, SNDL:US) also took off following a boost from day traders.

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What To Know About ATA Creativity Global?

With a market cap of US$ 448 million, ATA Creativity Global falls in the group of small-cap stocks. Reports says that its largest shareholder is a firm named Joingear Limited, owning a stake of about 30 per cent, and that is it not held by any major hedge funds.

Originally founded in 1999, the company is said to have been formerly known as American Testing Authority. It eventually reestablished itself as ATA Creativity Global in 2006. The company now functions out of Beijing, China.

ATA Creativity debuted on the equity markets in 2008, launching its stocks on the New York Stock Exchange (NYSE) under the ticker of ‘AACG’.

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