Underperforming the market in 2020, shares of First Majestic Silver (NYSE: AG) rose 9.6% while the S&P 500 climbed more than 16%. The start of 2021, however, has told a very different story. Whereas the S&P 500 dipped more than 1% in January, shares of First Majestic stock skyrocketed 35%, according to data from S&P Global Market Intelligence.
What made First Majestic’s stock look so lustrous in the eyes of investors last month? Simply put: Reddit. Members on the discussion board called WallStreetBets shifted their focus from GameStop and directed investors to buy First Majestic’s stock, leading to the stock’s surge. Although it was significant, Reddit wasn’t the only catalyst. Investors also picked up shares after the company reported strong Q4 2020 production results.