Meme stocks set to lose as focus shifts to fundamentals, says analyst

Farmmi

25/01/2022 15:39

** Meme stocks GameStop  GME.N  and AMC  AMC.N  drop ~4%
    ** Other retail darlings, including Blackberry  BB.N ,
Camber Energy  CEI.N , Lucid  LCID.O  and Farmmi  FAMI.O  down
between 3% and 4%
    ** Broader U.S. markets tumble amid risk-off mood  .N 
    ** Meme stocks' rally last year is losing steam as fears of
a faster rise in U.S. interest rates dampen speculative trading
 urn:newsml:reuters.com:*:nL4N2U4303
    ** "Investors need reliable fundamental research to assess
corporate profits as the market rotates away from high-flying
growth names to more stable cash generators," says David
Trainer, CEO of investment research firm New Constructs
    ** Trainer thinks GME, AMC remain dangerously overvalued;
GME up ~400% from its price in mid-Jan 2021, while AMC is up
585% since then
    ** Says the "disconnect phenomenon" also applies to Koss
Corp  KOSS.O ; shares up ~150% from mid-Jan 2021
    **  AMC is the second-most actively traded stock on
Stocktwits.com; KSS among top 10 stocks with the most "new
watchers" in the last 24 hours
    ** "There's a better chance for companies like Apple and
Microsoft to navigate through a high turbulence market," said
Ipek Ozkardeskaya, senior analyst at Swissquote

 (Reporting by Anisha Sircar and Medha Singh in Bengaluru)
 ((Anisha.Sircar@thomsonreuters.com;))