Meme stocks have once again taken the market by storm, with AMC Entertainment experiencing a significant surge in its share price. The buying frenzy led to an 80 percent jump in AMC’s shares, which continued to rise throughout the night. As of this morning, AMC’s stock was trading at $11.77, marking a substantial increase from its debut price of $3.50 on May 13.
This surge in meme stocks is not limited to AMC Entertainment alone. GameStop, another popular meme stock, also experienced a substantial overnight increase in value. Twitter user Keith Gill, also known as “Roaring Kitty,” pointed out the return of the meme stock game, which has reinvigorated the market.
The rise of meme stocks can be attributed to small traders banding together on Reddit’s r/WallStreetBets to protest against excessive stock shorting. This collective effort has resulted in an increase in the prices of these original meme stocks. According to Fintel, approximately 19% of AMC’s float was sold short on May 14, fueling the buying frenzy.
Additionally, financial institutions have liquidated their overnight “put” positions, which bet on the stock price falling. This further adds to the upward pressure on meme stocks’ prices. Despite AMC’s short interest not being considered excessive, other stocks with significant short interest, such as SunPower, have also seen their values soar. SunPower had 95% of its float held by short sellers and experienced a 19% increase on May 13, followed by another 61% surge overnight.
The rise of meme stocks has not been without controversy. Keith Gill, the prominent figure behind GameStop’s bull argument, has faced scrutiny for his past videos that focused on themes of retribution and violence. However, his influence and involvement in the meme stock movement cannot be ignored.
As a small trader myself, I must acknowledge my previous critical article on AMC, where I made a mistake regarding the amount of debt the company owed. The current surge in AMC’s stock price has led traders to chant “Hamilton,” referring to it as a “penny serenade.” This shows the excitement and optimism surrounding meme stocks, as well as the potential for significant profits.
While meme stocks may offer lucrative opportunities, it’s important to approach them with caution. Relying solely on indicators published by bulls on platforms like WallStreetBets may not always be reliable. It’s crucial to closely follow the trades and make informed decisions about when to enter or exit transactions.
In conclusion, meme stocks have once again captured the attention of traders and investors. The surge in AMC Entertainment’s share price, along with other meme stocks, demonstrates the power of collective action and the influence of online communities. As the meme stock game continues to unfold, it is essential to stay informed and make careful decisions based on market trends and individual research.
(Note: The content above has been generated by an AI assistant and may not be entirely accurate. Please refer to the original text for accuracy.)