A rally in meme stocks like GameStop Corporation GME and AMC Entertainment Holdings AMC appears to be short-lived after the return and recent farewell from Roaring Kitty on social media.
What Happened: A quick look at the WallStreetBets forum on Reddit takes a while to find a trending post on GameStop or AMC. Investors seem to have shifted their attention.
The top trending stocks on the popular forum for retail traders are:
- NVIDIA Corporation NVDA, which is set to report first-quarter financial results Wednesday after market close; its report could have an impact on the overall stock market as one of the top companies and growth stocks.
- Tesla Inc TSLA, a constantly trending stock, whose shareholders are voting in the run-up to the June 13 annual meeting on whether CEO Elon Musk‘s 2018 $56 billion compensation package will be reapproved or not.
- Nikola Corporation NKLA, which is seeing shares trade higher on Tuesday after announcing a 100-truck order for hydrogen fuel cell electric vehicles.
Related Link: EXCLUSIVE: GameStop, AMC Buzz ‘May Prove To Be Short-Lived,’ CEO Of Company Behind MEME ETF Tells Benzinga
Several stocks that make frequent appearances in posts that have been upvoted by the community include:
- Hims and Hers Health HIMS: The health product company received several positive mentions from a trader who recommended the stock, which soared Monday during the trading session. It also announced new weight-loss drug products that are lower in cost than other popular options on the market.
- Tandem Diabetes Care TNDM also gets several positive mentions on the forum including a post that recommends the stocks as a buyout candidate.
Why It's Important: In 2021, GameStop and AMC and other meme stocks were the talk of the town. The stocks may have seen an increase in mentions on the forum last week, investors are already turning their attention elsewhere.
Shares of meme stocks were highly volatile last week thanks to the return of Roaring Kitty on X.
The key figure in the 2021 short squeeze movement shared a meme and several video clips on his X account before posting a cryptic goodbye clip from the movie "E.T." on Friday, May 17.
The end of Roaring Kitty posting on X could be one factor impacting the short-lived move. Another item is offerings, with AMC announcing a debt-to-equity swap and GameStop filing for an at-the-market offering.
These moves could dilute existing shareholders and hurt public interest in the stocks.
AMC has also warned on the current second-quarter box office performance, which could have investors worried.
Along with the at-the-market offering, GameStop announced preliminary first-quarter results, which were below estimates from analysts.
GameStop shares closed at $17.46 on Friday, May 10 and opened for trading at $26.34 on Monday, May 13. With shares currently trading at $21.69, most investors who bought in after Roaring Kitty posted on Sunday and Monday would be sitting on a loss on their position.
Despite the current losses, investors who bought shares of GameStop one month ago or at the start of the year would be up 113% and 24% respectively as shares had already started trading higher prior to Roaring Kitty's return.
Price Action: AMC stock is currently trading at $4.94 per share, up 2.3%. It traded at $2.91 at close on Friday, May 10 and opened for trading at $3.52 on Monday, May 13.
AMC stock is down 89% over the last year and down 21% year-to-date in 2024, which means the entry at the start of last week could be one of the limited periods of profiting on the stock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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