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Reddit-based retail investors seem to be at it again. Meme stocks that went on a massive rally around late-January this year rose sharply again on Monday, April 26.
Day traders on Reddit forums took center stage earlier this year when they triggered a frenzied buying of meme stocks, including GameStop, AMC Entertainment, etc. It went on to create an international buzz on stock markets, even intriguing Wall Street analysts and investors.
This time, however, some of these trending meme stocks come with solid corporate and business updates that could also be stoking investors’ interest.
Let’s look into these developments and the recent stock performances of four meme stocks that gained sharply on Monday.
GameStop Corporation (GME:US, NYSE:GME)
GameStop Corporation, a gaming retailer, announced on Monday that it has concluded an equity offering worth US$ 551 million to support its transition to an e-commerce videogames distributor.
In the wake of this development, GameStop stock surged nearly 12 per cent, as 10.5 million of its shares changed hand on Monday.
The stock has rocketed by over 796 per cent this year, led by the Reddit-fueled frenzy. Its one-year return stood at 3,441.5 per cent, as per EODHD/Others data. Its current price is 168.93 apiece.
Naked Brand Group Limited (US:NAKD, NASDAQ:NAKD)
Naked Brand Group has also been pursuing an e-commerce shift of its operations while getting rid of its non-profit brick-and-mortar outlets. The apparel firm expects to earn a higher margin through e-commerce business.
Its share price soared by more than 29 per cent on Monday amid renewed meme-stock rally. Naked stock has zoomed over 283 per cent this year, despite tumbling by more than 78 per cent from its 52-week high of US$ 3.4 apiece (January 28, 2021) to Monday’s close price of US$ 0.736.
AMC Entertainment Holdings Inc (AMC:US, NYSE:AMC)
For the past one quarter, movie theater chain AMC Entertainment has been on retail investors’ radar and risen by over 442 per cent year-to-date (YTD).
Its shares spiked by over 13 per cent on Monday, and returned about 277 per cent in the past one year.
Having closed at US$ 11.5 on Monday, AMC stock registers a decline of nearly 44 per cent from its Reddit-ignited January peak of US$ 20.36 apiece. The stock, however, could grow post COVID-19 inoculation drive in the US as movies theatres begin to properly function again.
©Kalkine Group 2021
MicroVision Inc (MVIS:US, NASDAQ:MVIS)
MicroVision is a hardware technology firm develops Light Detection and Ranging (LIDAR) sensors for autonomous driving and automotive safety applications. It is said to be an exclusive Redittors’ short-squeeze stock option these days.
MicroVision outperformed other meme stocks on Monday with a jump of over 47 per cent and a hyperactive one-day trading volume of 213.6 million. It also set a fresh 52-week record high of US$ 27.8 per common share.
The scrip skyrocketed by over 10,574 per cent to U$ 26.44 apiece in the past one year, as compared to an annual low of US$ 0.239 apiece (April 29, 2020).
MicroVision is set to report its first-quarter 2021 earnings on Thursday, April 29, as per the company’s latest exchange filing.
A point to be noted when comes it meme stocks is, track record shows that such stocks sometimes backfire and plunge amid short-selling.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
