AMC shares attempt a comeback, GameStop falls

Marin Software

15/07/2021 19:22

July 15 (Reuters) - Shares of retail favorite AMC
Entertainment were fighting to reverse a recent string of losses
Thursday, as Wall Street debated the longevity of a trading
frenzy in stocks that gained a massive following on social media
in 2020.
    AMC shares were recently up 1.7% at $33.99 after four
straight days of losses. The hugely volatile stock has lost more
than half its value since hitting a record high of $76.62 on
June 2. On Thursday, the stock swung between a low of $32.14 and
a high of $37.40.
    Shares of videogame retailer GameStop, meanwhile, continued
their recent tumble and were off 3.1% at $162.34, compared with
its June peak of $344.66. 
    Netflix  NFLX.O  said late Wednesday that it had hired of a
former Facebook  FB.O  executive to lead its video games unit as
it ramps up efforts beyond its traditional streaming business,
potentially adding competition for GameStop.  urn:newsml:reuters.com:*:nL4N2OQ4BJ
    Cinema operator AMC and GameStop have been at the center of
massive rallies in meme stocks that hurt bearish hedge funds and
raised the profile of retail investors coordinating their buying
on websites such as Reddit’s WallStreetBets. 
    While both are sitting on big year-to-date-gains - AMC is up
about 1500% in 2021 and GameStop is up around 760% - their more
recent slides have led some analysts to question whether the
retail fervor that buoyed their shares is dying down.
    Retail investor purchases of meme stocks tracked by Vanda
Research have declined steeply since early June, roughly
mirroring the fall in the basket of meme stocks followed by the
firm.
    “Retail investors are slowly capitulating on meme stocks,
and prices are tumbling as a result,” Vanda’s analysts said in a
recent note.
    Meanwhile, Google searches for “invest” and “buy stocks”
have fallen back to pre-pandemic levels, in what DataTrek
co-founder Nicholas Colas said is an ominous sign for the meme
stock rally.
    "Bubbles need fresh money, or they deflate. Quickly," wrote
Colas in a Thursday research note.
    JPMorgan’s Peng Cheng, however, noted that AMC and some
other meme stocks saw “significant” retail buying last week,
even as they declined.
    Other stocks popular on social media include Marin Software
 MRIN.O  which was down 26.5% on Thursday at $10.05, well below
its 2021 peak of $27.26 reached on July 6, although still above
the June 23 close of $1.71. Similarly, after massive spikes in
trading volume that kicked off in early June, ContextLogic
 WISH.O  last traded at $9.74 after touching $15.18 in late
June.  

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
AMC, GameStop shares fall to half of their June peaks   
 urn:newsml:reuters.com:*:nL1N2OQ2RW
Some on Wall Street try options trade to bet against AMC without
getting burned     urn:newsml:reuters.com:*:nL2N2NN0DH
Updated rules needed as tech drives U.S. trading -SEC chief   
 urn:newsml:reuters.com:*:nL1N2MU0XF
Reddit forums get behind Roblox ahead of stock launch   
 urn:newsml:reuters.com:*:nL4N2L83JS
Yellen says SEC will prepare report on retail trading volatility
    urn:newsml:reuters.com:*:nL1N2KO3G8
ANALYSIS-The other winners of the Reddit-fueled rallies:
convertible bonds     urn:newsml:reuters.com:*:nL1N2K8146
ANALYSIS-GameStop saga may provide early test of Biden
administration ethics pledges      urn:newsml:reuters.com:*:nL1N2K334F
ANALYSIS-A tulip by another name? 'Gamestonk' and the case for
investor caution     urn:newsml:reuters.com:*:nL1N2K42M3
BREAKINGVIEWS-AMC makes its own meme movie     urn:newsml:reuters.com:*:nL3N2NK3YN
BREAKINGVIEWS-GameStop is a SPAC now     urn:newsml:reuters.com:*:nL2N2O41R2
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting By Sinéad Carew, Lance Tupper and Chuck Mikolajczak)
 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))