Lumber Liquidators saw shares climb 18.6 percent in a single day after an investor shared a bullish case for the company's stock on Reddit.
The poster claimed the company had big potential for turnaround as the housing market is bouncing back. The poster, who claimed to have 25,000 shares and proved it via screenshots, cited that homebuilder indeces were at all-time highs. He or she encouraged people to buy calls and pick up the stock ahead of earnings on February 25. Many apparently followed the advice.
The post appears to have been removed by Reddit moderators, who can "remove posts from feeds for a variety of reasons, including keeping communities safe, civil, and true to their purpose." The post's title and comments can still be seen, however.
It's rare for a for an argument on social media to change a stock's value as quickly and powerfully as this one did.
Lumber Liquidators has seen its share of turbulence over the past few years. Earlier this month, CEO Dennis Knowles abruptly resigned. The resignation came after a year of severe stock decline.
Shares rose nearly 2 percent following the announcement. The company's stock has declined more than 32 percent over the past year.
Last month, analysts at Morgan Stanley say Lumber Liquidators struggled to achieve a sustainable improvement in sales since regulatory and product issues hit in 2015, despite the home improvement industry improving as a whole. They attributed the company's troubles to its infamous 2015 scandal, in which a 60 Minutes report exposed the retailer for having too much formaldehyde in its Chinese-made laminate flooring.
They said that the company's main competitor, Floor & Decor Holdings Inc., is growing at a rate of 20 percent a year while expanding into new regions. Floor & Decor's shares have surged by 51 percent in the past year.
Analysts recommend the company change its name, as they say its reputation is tarnished.
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