Thursday, February 9, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Stocks

AMC, other ‘meme’ stocks jump; regulator signals concern

MtR by MtR
June 8, 2021
in Stocks
0
AMC, other ‘meme’ stocks jump; regulator signals concern


An AMC theatre is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., January 27, 2021. REUTERS/Carlo Allegri/File Photo

Related articles

Stock Market News Today Live: Dow, S&P 500 Waver Ahead of Labor Costs, Earnings – The Wall Street Journal

August 9, 2022

S&P 500, Nasdaq futures fall on Tuesday as chip stocks decline

August 9, 2022

Shares of AMC Entertainment Holdings Inc (AMC.N) and other “meme stocks” jumped on Monday, extending a rally in social-media favorites into a third week as message boards hummed with talk of squeezing Wall Street short-sellers.

The sharp gains prompted the U.S. Securities and Exchange Commission to say it was looking into signs of market manipulation given the “volatility in certain stocks.”

The volatility has challenged analysts, and two of them in the past week have stopped covering video game retailer GameStop, whose shares soared in January in a retail-driven rally.

Cinema operator AMC jumped almost 15%, putting its gain over the past five sessions at 111%. BlackBerry’s U.S. listing surged 14% and is now up 57% since the start of June.

“AMC never ceases to amaze me. Just when I think that train is over, it jumps almost 10 points in the first 30 min of trading,” one poster on Reddit wrote.

AMC shares are up about 2,500% in 2021 as the company has courted individual investors, while GameStop has surged over 1,300% year to date.

Some bearish investors retreated from bets against AMC on Friday. Short interest slumped to 74.5 million shares, or 14.9% of AMC’s float, from 88.2 million on Thursday, according to S3 Partners.

Clover Health Investments (CLOV.O), which has been the target of short sellers, was one of the most mentioned stocks on Reddit’s wallstreetbets on Monday, with some users suggesting the shares as the forum’s next short-squeeze target.

The insurer’s shares soared 32% in their highest volume trading day since April 19.

Institutional investors are largely sitting on the sidelines as the meme-stock rally continues.

Amateur investors, however, “don’t need a reason,” said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut. “They’re trying to do the same thing they did last week. It’s a new week. They start over, the meme stock buyers, the wallstreetbets Reddit community.”

ANALYSTS SIT OUT

Despite the retail-investor driven rally, Wall Street analysts have largely refused to raise target prices, which reflect their view of fair value for a company’s shares.

Telsey Advisory Group analyst Joseph Feldman terminated coverage of GameStop. His last rating was “underperform,” with a price target almost 90% below Monday’s level.

“We’re focusing on other areas,” he said. “It’s hard to justify where the stock is trading relative to the fundamentals.”

Bank of America stopped covering GameStop last week, citing “a reallocation of resources.”

With GameStop set to report its quarterly results on Wednesday, the same day it holds its annual shareholders meeting, options prices imply a potential 24% swing for the stock in either direction by the end of the week, according to data from Refinitiv.

AMC has been the top-traded stock among clients of brokerages Fidelity and Freetrade, used heavily by individual investors managing their own money, data showed.

BlackBerry topped the list of stocks mentioned on wallstreetbets on Monday, according to the swaggystocks.com sentiment tracker.

The SEC continues to “monitor the market in light of the ongoing volatility in certain stocks to determine if there have been any disruptions of the market, manipulative trading, or other misconduct,” an SEC spokesperson said in a statement on Monday.

“In addition, we will act to protect retail investors if violations of federal securities laws are found,” the SEC said.

Market participants have told Reuters that some institutional investors are ramping up options trades that let them bet the shares will fall while keeping a lid on potential losses if they gain.

AMC’s corporate debt has benefited from the rally in its stock, though not to the same extent, in part because corporate debt is less accessible to retail investors. Its June 2026 12% bond , worth about $1.5 billion, is up over 360% since Jan. 1, tame compared to the stock’s gain.

“Bond holders are suspect of the volatile swings in the equity and where the real valuation is,” said John McClain, high yield portfolio manager at Diamond Hill Capital Management. “Do you really want to be the investor who buys AMC debt and watches the equity come back to reality?”

Our Standards: The Thomson Reuters Trust Principles.



Source link

Related Posts

Stock Market News Today Live: Dow, S&P 500 Waver Ahead of Labor Costs, Earnings – The Wall Street Journal

by MtR
August 9, 2022
0

Stock Market News Today Live: Dow, S&P 500 Waver Ahead of Labor Costs, Earnings  The Wall Street Journal Source link

S&P 500, Nasdaq futures fall on Tuesday as chip stocks decline

by MtR
August 9, 2022
0

Traders on the floor of the NYSE, August 1, 2022.Source: NYSES&P 500 futures fell on Tuesday after another chipmaker warned...

Alibaba gets Hong Kong’s approval for a primary stock listing

by MtR
August 9, 2022
0

A filing Monday showed Chinese internet tech giant Alibaba is another step closer to letting mainland Chinese investors trade its...

Jim Cramer says these 7 Covid-era winning stocks have staying power

by MtR
August 9, 2022
0

CNBC's Jim Cramer on Monday offered investors a list of stocks that saw huge gains during the height of the...

US stocks tick lower as traders assess outlook for rate rises

by MtR
August 8, 2022
0

Wall Street stocks ticked lower on Monday, adding to losses in the previous session when a hot US jobs report...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Industrial Lubricants Market to Reach $71 Billion by 2027.

August 10, 2022

Recent News

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter