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Reddit Army shoots meme-stocks into stratosphere | TICKER VIEWS
The Reddit retail-trading army is back bigger than ever, as is the meme-stock frenzy. Last time it was GameStop and now there’s a new player.
Shares in AMC Entertainment Holdings boomed to all-time highs across a wild trading session,
At one point the money-losing movie-theatre stocks rose 127 per cent. Its total gains this year topped three thousand per cent.
A few months ago AMC was on the brink of bankruptcy as the pandemic shut cinemas across America. The company isn’t making money but fundamentals apparently don’t matter to the retail investors, they’re after hedge fund short-selling pain.
Similar to GameStop, AMC is an unremarkable business but that didn’t prevent its stock price rising 95 per cent and closing at a record high of just over $62 USD.
Michele Scheider from Market Gauge says the trend will continue until one thing changes.
“I think it’ll rotate into the next thing, until we do see where the ability of hedge funds to manipulate these companies gets more regulated, and there isn’t so much fodder for the Reddit army to go after.”
It’s another example where Wall Street traders would be shaking their heads.
Michelle Schneider from MarketGuage says “it’s crazy” and “we know this can cripple companies”
AMC announced that it will reward the small-time supporters with goodies including special screenings and free popcorn.
The other news of the week surrounded Elon Musk’s favourite: Doge Coin.
The joke cryptocurrency rose over 20% after the major exchange operator Coinbase allowed Doge to be traded on their platform.
It left Musk pretty chuffed and Schneider says the ‘joke’ isn’t that funny.
“There isn’t really a joke here. We still have a tremendous amount of adoption from different institutional companies that are using Bitcoin and other ‘joke’ coins as a currency.”