Meme stocks are having a moment. Again.
Shares of Bed, Bath & Beyond (BBBY), GameStop (GME), and AMC (AMC) were all surging on no news as of Monday morning, aside from renewed attention on these names from the traders on Reddit’s Wallstreetbets message board investors came to know in early 2021.
According to data from Ape Wisdom, a site that tracks ticker mentions on Wallstreetbets threads, mentions of Bed, Bath & Beyond, GameStop, and AMC have surged in the last 24 hours and are the three most popular tickers on the subreddit as of Monday morning.
Bed, Bath & Beyond shot up as much as 50% while GameStop and AMC shares were both higher by more than 15%. Shares of GameStop and AMC were both halted for volatility in the opening minutes of trading.
Near midday, all three stocks were still holding onto significant gains, with Bed, Bath up 38%, AMC up 12%, and GameStop up 11% even as the major equity indexes were sliding towards losses for the day.
Both GameStop and Bed, Bath & Beyond have ties to Ryan Cohen, the co-founder of Chewy who has become one of the most prominent investors in the meme trade that caught the nation’s attention in January 2021.
Cohen is the chairman of the board at GameStop and his firm RC Ventures holds a nearly 10% stake in Bed, Bath & Beyond. In June, Bed, Bath & Beyond CEO Mark Tritton stepped down from his role as chairman and CEO, a shakeup that follows the company reaching an agreement with Cohen back in March to add directors to the board and explore strategic alternatives for its buybuy BABY brand.
Last week, AMC reported quarterly results that showed losses narrowed from the prior year while also announced a special dividend to shareholders
Another entry into this latest iteration of the meme market is inexplicable trading in several new Chinese IPOs, with shares of AMTD Digital (HKD) rising over 15,000% at one point following its recent debut. The company, which operates a “comprehensive one-stop digital solutions platform,” was at one point worth over $400 billion despite reporting just $25 million of revenue in its most recent year, according to Bloomberg.
Shares of AMTD IDEA Group (AMTD), of which AMTD Digital is a subsidiary, also rose more than 300%.
Last week, Magic Empire Global (MEGL), another Hong Kong-based company, surged more than 1,000% following its IPO. Shares of Magic Empire were up as much as 80% early Monday.
This latest resurgence in the meme trade also comes as markets continue to turn around from lows reached in mid-June, with investor Tom Hearden noting Monday that Goldman’s “most shorted” basket of stocks has gained 17% in the just the last three-plus trading days.
More to come. This post will be updated.
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Source: https://finance.yahoo.com/news/meme-stock-mania-august-8-2022-143753607.html