Are These Meme Stocks Going To Blow Up Again?

Thursday, June 3, 2021 | Sam Quirke
Are These Meme Stocks Going To Blow Up Again?A quick look at any financial headlines this week makes it clear that there’s a buying frenzy kicking off in the world of meme stocks once again. They grabbed both Wall Street’s and Main Street’s attention for a couple of weeks in January as double and triple percentage daily moves became the norm but then they seemed to fade away almost as quickly as they appeared

But as equity markets, in general, turn higher after a sluggish few months in the meantime, it looks like there’s a fresh fire being lit underneath stocks that have above average short interest. Here are three that are worth keeping a close eye on.

AMC Entertainment Holdings (NYSE: AMC)

With as much as a 500% pop in the past week, AMC is currently the hottest of them all. It has a ways to go before it can top the 800% rally it posted in January, but what’s interesting here is that the share price is already three times higher than that previous high

There’s an argument to be made that as we approach a complete economic reopening and recovery that the likes of AMC and their cinema business stand to do very well, but that certainly can’t claim all the glory for this most recent run. The stock’s short interest has kept it at the forefront of the minds of retail traders, many of whom crowd source their buying strategies on online forums. 

AMC’s management must be thanking their lucky stars as they take advantage of the higher share price to raise some much needed fresh capital. But for all the excitement it’s important to remember that there are no fundamentals justifying this move. 
Are These Meme Stocks Going To Blow Up Again?

GameStop (NYSE: GME)

Though shares of GameStop gave back 90% of their value after the January mania died down, they surprised many by refusing to return to their pre-short squeeze levels. Instead, they stubbornly insisted on trending upwards to the point where they’ve now spent much of the past four months trading more than 800% higher than their December 2020 average. 

Like with AMC, the risk-on sentiment that has returned to equities in recent weeks has brought fresh optimism to GME, and their stock has more than doubled since the middle of May. Just as it was looking like it was going to mature and trade a normal daily range indefinitely, that’s been blown right open and we could be looking at a repeat of what happened on January 28th. 
Are These Meme Stocks Going To Blow Up Again?


One thing is for sure, the fiscal Q3 earnings report from headphone manufacturer Koss isn’t the reason behind the 150% move seen in their shares over the past week. EPS was firmly in the red while revenue was 17% on the year, but still that hasn’t stopped them becoming a darling of the meme stock traders who have been piling into shares in recent sessions.

Daily traded volume numbers have yet to match those from the start of the year but they could be on the horizon if the narrative gathers some momentum. Shares have broken through resistance and are now at their highest levels since January. Back then, there were days when the stock ran up as much as 600% in a single session. So while there’s little to find attractive about them for the long term, maybe there’s an argument to be had for putting some fun money into them. 

Are These Meme Stocks Going To Blow Up Again?

Getting Involved

That’s probably the name of the game for any of the stocks on this list and their peers. The experts have been out in force this week urging caution, and all three of these stocks feature high up in former fund manager Whitney Tilson’s "Short Term Bubble Basket" list. 

He recently went so far as to say, “mark my words: these stocks will fall 25% within a month (probably much sooner), 50% within three months, and 75% within a year". This may well turn out to be the case, but that doesn't mean there isn’t some fun to be had in the meantime.

Featured Article: Stock Market - What is a circuit breaker?

7 Penny Stocks That Don’t Care About Robinhood

By the time you read this Vladimir Tenev, the CEO of the trading app Robinhood, will be testifying in front of Congress. The company’s role in the GameStop (NYSE:GME) short squeeze will be called into question.

However, the real issue at stake is the right of traders to buy and sell the equities of their choice. In the case of Robinhood, some traders are buying a lot of penny stocks. While definitions vary, penny stocks are generally considered stocks that are trading for less than $10 per share. These stocks are largely ignored by the investment community.

One reason is that many of these stocks are cheap for a reason. For example, the company may have a business model that is out of date. In other cases, they operate in a very small, niche market that doesn’t drive a lot of revenue.

And most of these stocks are ignored by the investment community. They simply aren’t considered significant enough to spend time debating.

But some penny stocks do have the attention of Wall Street. And they’re being largely ignored by the day trading community. The focus of this special presentation is to direct you to penny stocks that have a story that the “smart money” thinks will eventually be trading at much higher prices.

And that’s why you should be looking at them now.

View the "7 Penny Stocks That Don’t Care About Robinhood".

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
GameStop (GME)1.0$213.82flatN/A-117.48Sell$21.40
Koss (KOSS)0.8$22.82flatN/A456.40N/AN/A
AMC Entertainment (AMC)0.9$59.26flatN/A-2.77Hold$4.71
Compare These Stocks  Add These Stocks to My Watchlist 

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.