Is Now The Time To Buy Into AMC, Nokia, Rocket Companies?

These stocks saw high retail investor interest on social media at press time early Wednesday.

AMC Entertainment Holdings Inc AMC: The cinema chain was among the top three most discussed names on r/WallStreetBets or WSB, a Reddit forum known for short squeezes, at press time. AMC also topped the 10 trending streams list as compiled by Stocktwits.

AMC said nearly 3.2 million people saw films at its theaters globally between July 8 and July 12 giving the company its highest weekend attendance since the coronavirus pandemic began. 

Rich Greenfield of Lightshed Partners told Yahoo Finance that the numbers are not close to pre-pandemic levels and said AMC’s shares were overvalued. 

Wall Street continues to bet against AMC using complicated bearish options strategies like “Bear put spread,” as per an earlier report.

This month, AMC said it would not vote on a previously announced $25-million-share offering. This would have allowed the pandemic-hit company to raise cash. 

AMC CEO Adam Aron said on Twitter, “It’s no secret I think shareholders should authorize 25 million more AMC shares. But what YOU think is important to us.”

AMC shares have spiked 1,756.1% since the year began. On Tuesday, AMC shares fell 7.65% in the regular session to $39.35 and another 5.64% in the after-hours to $37.13.\

See Also: How To Buy AMC Entertainment (AMC) Stock

Nokia Oyj NOK: The Finland-based network, software, and internet protocol infrastructure company was the second most discussed stock on WSB and was also trending on Stocktwits.

Nokia said Tuesday that it expects to revise its 2021 financial guidance upwards thanks to robust second-quarter business. Previously, the company had given a net sales guidance of between EUR 20.6 billion ($24.27 billion) and EUR 21.8 billion ($25.69 billion).

The company’s stock has broken the $5 resistance level and could witness a trend change, as per Benzinga’s Tyler Bundy.

Nokia shares have risen 50.4% since the year began. On Tuesday, the company’s shares rose 9.4% to $5.88 in the regular session and another 1.19% in the after-hours trading to $5.95.

Rocket Companies Inc RKT: The Detroit, Michigan-based holding company which spans personal finance and consumer service brands trended on WSB and was placed fifth on Stocktwits list of top 10 trending streams.

This week, Jefferies analyst Ryan Carr downgraded Rocket Companies from Buy to Hold and cut his price target to $18 from $26.

See Also: Why Rocket Companies Stock Could Be In For A Big Breakout

Carr based his thesis on a “price war ongoing in the wholesale channel” which he said would continue past 2022. This could eat into the company’s margins despite strong sales volumes.

On Tuesday, a class-action lawsuit was filed against Rocket in Detroit. The lawsuit alleged that the company made false and misleading statements regarding its sale margins which the lawsuit said were impacted by “increased competition.”

Rocket shares fell 5.08% to $17.11 on Tuesday in the regular session and rose 0.41% in the after-hours season. On a year-to-date basis, Rocket shares have fallen 15.4%.
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