The so-called ‘meme stocks' recently returned in the past few months. As some investors thought this round would repeat what happened in 2021, that would be a sorely mistaken assumption.
Meme stocks are incredibly volatile on Friday as investors react to the latest earnings report from GameStop (NYSE: GME ). GameStop failed to impress investors with its Q1 earnings report.
AMC Entertainment (NYSE: AMC ) is caught in the crosshairs of meme traders today. AMC stock closed up over 12% yesterday as the shares were boosted by the news that meme stock investor Roaring Kitty was going to appear on YouTube today.
AMC Networks is facing challenges in its core business, leading to declining revenue and profitability. The company's streaming services, including AMC+, show potential for growth and hidden value. Shares of AMC Networks are attractively priced, but long-term issues in the industry may limit upside potential.
The environment for short sellers on Wall Street has grown tougher, leading many prominent figures to scale back or exit. Jim Chanos, famous for predicting Enron's collapse, converted his hedge fund into a family office last year.
AMC Entertainment (NYSE: AMC) stock price has crawled back in the past few weeks, helped by the meme stock frenzy. It has jumped to $5.80 from the year-to-date low of $2.40.
Cineplex operator AMC Entertainment (NYSE: AMC ), which, while broadly embattled, received a lifeline from meme-trading sentiments, saw its shares continue to move higher on Thursday. In the prior session, AMC stock skyrocketed as shareholders pushed back against management's proposal.
The seeming inability of retail investors to permanently lift meme stocks bodes badly for AMC Entertainment (NYSE: AMC ) stock. Meanwhile, the company's rather unimpressive first-quarter results, along with its high valuation and huge debt load, also don't look good for its outlook.
Investing in meme stocks is speculative and risky, and with meme stocks tumbling, now is the time to look for meme stocks to sell. With little more than internet discussion board chatter to go on, meme stocks are the stock market's equivalent of the Wild West.
AMC Entertainment (AMC) could be a great choice for investors looking to buy stocks that have gained strong momentum recently but are still trading at reasonable prices. It is one of the several stocks that made it through our 'Fast-Paced Momentum at a Bargain' screen.
Shares of AMC Entertainment (NYSE: AMC ) are up more than 10% today, although the rise isn't attributed to any company-specific news. Rather, AMC stock is trading higher in sympathy with GameStop (NYSE: GME ).
It's safe to say that you just can't keep meme stocks out of the equation. Especially after the recent meme stock rally, triggered by Keith Gill, aka “Roaring Kitty,” to social media, had the market buzzing again.