Benzinga - by Chris Katje, Benzinga Staff Writer.
A rally in meme stocks like GameStop Corporation (NYSE:GME) and AMC Entertainment Holdings (NYSE: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 (NASDAQ: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 (NASDAQ: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 (NASDA: NKLA), which is seeing shares trade higher on Tuesday after announcing a 100-truck order for hydrogen fuel cell electric vehicles.
Several stocks that make frequent appearances in posts that have been upvoted by the community include:
- Hims and Hers Health (NYSE: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 (NASDAQ:TNDM) also gets several positive mentions on the forum including a post that recommends the stocks as a buyout candidate.
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.
Read Next: AMC Stock Rallies Monday: Can ‘Great Success’ Of Billie Eilish Concert Film Offset Q2 Box Office Weakness?
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