Fannie and Freddie stock prices are soaring today, but still down for the year. Here’s why

Core Viewpoint - Shares of Fannie Mae and Freddie Mac experienced significant price surges following hedge fund manager Bill Ackman's social media post, which highlighted their undervaluation and potential for substantial returns [2][3]. Group 1: Stock Performance - Fannie Mae shares rose over 35% to more than $6.50, up from $4.86 on Friday, but are still down nearly 40% year-to-date [4]. - Freddie Mac shares increased by 33% to over $5.80, despite being down almost 44% year-to-date [4]. Group 2: Market Commentary - Ackman described Fannie Mae and Freddie Mac as "stupidly cheap," suggesting they could see a 10X return soon, which contributed to the surge in their stock prices [3][6]. - Michael Burry, known for his role in "The Big Short," expressed agreement with Ackman, indicating that such opportunities are rare in the current market [8]. Group 3: Historical Context - Fannie Mae and Freddie Mac have a history of significant price fluctuations, with Fannie Mae peaking at over $80 in 2001 and Freddie Mac exceeding $65 in the mid-2000s before both stocks fell dramatically during the 2008 financial crisis [7]. - The stocks have seen limited recovery until recently, with Fannie Mae reaching around $15.30 in September 2025 [7].