AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
.jpg)
Highlights
- Meme stocks rallied on Tuesday, August 24, as retail investors came back to lend their support to them.
- GameStop had taken everyone by surprise after its share prices surged massively since the beginning of this year.
- AMC Entertainment’s stocks also surged on Tuesday’s trading session and it seemed like all the major meme stocks were getting attention.
After vanishing for a brief period, it seems meme stocks are back on the radar of retail investors. On Tuesday, August 24, stocks of popular meme stocks like GameStop Corporation (NYSE:GME), AMC Entertainment Holdings Inc. (NYSE:AMC) and BlackBerry Limited (TSX:BB) rallied as investors came back to lend their support to these stocks despite an otherwise quiet market.
Major market indexes witnessed a modest surge as Nasdaq (.IXIC) climbed 0.5 per cent and the S&P 500 (.SPX) closed 0.1 per cent higher. However, several of the meme stocks made big gains.
Often dubbed the meme stock king, over 14 million shares of GameStop traded hands on the New York Stock Exchange as it surged by 27.5 per cent to close at US$ 210.29 per share. Meanwhile, stocks of AMC Entertainment surged by 20.3 per cent and BlackBerry stock climbed nine per cent on no apparent news.
That said, let's look at the performances of these stocks:
GameStop Corporation (NYSE:GME)
GME stock has given a stellar performance as retail investors on social media platform Reddit kept backing the game retailer. GameStop's share prices returned 4,218 per cent to the shareholders in the last one year and 1,016 per cent year-to-date (YTD). Outperforming the S&P 500 Index's relative growth of 14.7 per cent in the past month, GME stock prices surged by 30.5 per cent in the same period.
GameStop's 52-week low was US$ 4.56 apiece on August 24, 2020, and one year later, the share prices were up by 4,511 per cent on August 24, 2021.
BlackBerry Limited (TSX:BB)
BlackBerry used to be one of the leading smartphones companies in the world, however, it failed to retain that position. In Canada, it has become a meme stock as its prices went up suddenly after retail investors took interest in the company via Reddit discussion forums.
Also Read: BNS stocks rise as Scotiabank posts $2.5B Q3 profit. Time to buy?
Copyright © 2021 Kalkine Media
Despite no significant development, the BlackBerry stock managed to expand by 121 per cent in the last twelve months. The difference between its close and the simple moving average was 8.6 per cent in the last 30 days, according to the data from Refinitiv.
As the software provider is tracked by the Toronto Stock Exchange 300 Composite Index, the BlackBerry stock has notably outperformed this index by surging about 66 per cent YTD. In comparison, the index grew by only 41 per cent.
BlackBerry stock was priced at C$ 14 per share at the market’s close on August 24.
AMC Entertainment Holdings Inc. (NYSE:AMC)
Stocks of AMC Entertainment witnessed a massive surge in volume, as approximately 229 million shares changed hands on August 24. The AMC shares were priced at US$ 44.26 apiece at the close of the trading session.
In Q2 2021, AMC clocked revenues of US$ 444.7 million, up from US$ 18.9 million in Q2 2020. Meanwhile, the entertainment company also managed to narrow its net loss to US$ 344 million in Q2 2021, down from US$ 561.2 million in the same comparable period last year.
Also Read: CryptoPunks breaks sales record. Is this the beginning of NFT frenzy?
AMC stock has catapulted by 170 per cent in the last three months.
Bottom line
The retail trading frenzy took Wall Street by storm since the beginning of this year as stocks with poor fundamentals performed exceptionally well. Since the past two or three months, the craze for meme stocks had subsided, however, it seems that meme stock supporters are back, and presumptively, the trend will likely continue throughout the year.
