The stocks most talked about on Reddit lately ended last week in the red. Despite bullish signs earlier in the week and a stock market that moved generally higher, meme mania did not gain traction. Bearish forces dragged some of the main meme stocks down, as the chart below depicts.
Today, we feature three meme stocks to keep an eye on this time. Will they perform better during the shortened week of trading?
(Read more from Wall Street Memes: AMC Stock: Shorts Are Playing With Fire)
$GME - GameStop
After rallying strongly and peaking in early June, GameStop stock (GME) - Get GameStop Corp. Class A Report underwent a sharp correction in the following weeks. The low volume of comments followed the stock's decline which, since June 9, has fallen by 33% – see below.
GameStop was included in the Russell 1000 index on June 25, causing some optimism for a moment. However, early enthusiasm was not enough to push the stock higher. I recently wrote about why GME's inclusion in this index could, in fact, be a bearish development for the stock.
Another factor that may have caused bearishness was GameStop’s involvement in a trading halt investigation by Robinhood. The platform was fined $70 million for violations linked to options trading, margins, and lack of proper customer support.
Will GME weather these headwinds and find its way north once again? Time will tell.
(Read more from Wall Street Memes: Why Index Rebalancing Can Be Good For AMC, Bad For GameStop Stock)
$AMC - AMC Entertainment
Movie theater operator AMC also finished last week in the red. AMC stock (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report was a hot topic of discussion on WallStreetBets, and the overall sentiment was positive – but shares still ended 5% lower.
AMC CEO Adam Aron addressed speculation around AMC‘s recent SEC filing that some may have read a bit too much into. According to the CEO, the company’s decision to withdrawal its S3 was not associated with new debt or equity issued. “Nothing good or bad for AMC”, said the executive. But “whose side are you on, ours or the hedge funds? My 25,000 shares will hurt!”, one Twitter user replied.
Lastly, on July 2, Iceberg Research announced a short position on AMC shares – and Wall Street Memes explained why a trade like this could be dangerous. The news could have helped to push the stock down 9% during the day. However, throughout the trading session, shares recovered 5%.
(Read more from Wall Street Memes: Brace For The Mother Of All Short Squeezes)
$SOFI - SoFi Technologies
Fintech company SoFi (SOFI) - Get SOFI TECHNOLOGIES INC Report, one of the most recent meme stocks, had an impressive volume of comments in the last days of June. However, the company's shares – whose upside potential is also rooted in decent business fundamentals – have not yet been “taken to the moon” by meme mania.
Could this be the week when SOFI share price reflects all the attention that they have received on WallStreetBets over the last several days?
(Read more from Wall Street Memes: SOFI: Much More Than A Meme Stock)
GME and AMC closed last week in the red. What are your expectations for these two stocks this week?
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)