MeetMe Inc (NASDAQ:MEET), La Jolla Pharmaceutical Co. (NASDAQ:LJPC), and Sorrento Therapeutics Inc (NASDAQ:SRNE) experienced a formidable surge on the stock market last week. What was the impetus driving big gains in these stocks and did hedge funds predict their upward momentum? Let’s take a look at the activity in these stocks and find out.
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MeetMe Inc (NASDAQ:MEET), the location-based social network, raised its revenue and EBITDA guidance for the second quarter last week, which led to a massive spike in the shares of the company on Tuesday. The company now expects revenue of $10.5 million to $10.7 million in the second quarter, up from its previous guidance of $9 million to $9.5 million. After the guidance change announcement on Tuesday, MeetMe Inc (NASDAQ:MEET)’s stock went up by 11.1% to $1.44 and surged by another 28.5% to $1.85 on Wednesday. The company says that it has raised its expectations for the second quarter because of a dramatic increase in its app ads revenue. According to Geoff Cook, CEO of MeetMe Inc (NASDAQ:MEET), the ads revenue in the first three weeks of June went up by 23% compared to the May average. Overall hedge fund activity on the stock was neutral, with ownership dipping to five funds through the end of the first quarter from six at the end of 2014, while aggregate investments rose to $14.13 million from $11.74 million. Joseph Jolson‘s Harvest Capital Strategies is the largest shareholder in our database, owning 4.56 million shares.