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In comparison to the rest of 2021, AMC stock has witnessed lower-than-average daily trading volume over the last ten days.
Getty Images / Angela Weiss / AFP
Stocks of memes
AMC Entertainment is a company that produces movies.
and
GameStop
After weeks of sluggish trade, stocks dropped dramatically on Wednesday, extending their losses for the fourth day in a row. On Wednesday, AMC stock (ticker: AMC) fell 9.8% to $45.07, while GameStop stock (GME) fell 4.5 percent to $190.66. Stocks of
Bed Bath & Beyond is a retailer that sells home goods.
(BBBY) and (BBBYYYYYYYYYY
BlackBerry
(BB) both declined roughly 5% as a result of the meme trade sparked by Reddit users’ curiosity.
According to Dow Jones Market Data, AMC stock has been on a four-day losing run since May 6, when it was down for eight trading days in a row. During that time, the stock dropped by about 21%. GameStop’s stock has been on a similar downward trend since May 5. During this time, it has lost 11% of its value. Those streaks began before meme stocks began their most current climb, which began at the end of May. Nonetheless, AMC and GameStop are trading at far higher levels than they were in early May. Year to date, AMC stock has risen more than 2,000 percent, while GameStop stock has up approximately 900 percent. However, since the beginning of June, both equities have been on a negative trend.
In recent sessions, trading volume at AMC and GameStop has been lower. According to Dow Jones Market Data, the daily volume of AMC stock has averaged 87.7 million shares traded during the last ten days, compared to an average of 170.7 million shares for the remainder of 2021. Similarly, over the past 10 days, GameStop’s daily volume averaged 4.6 million shares traded, compared to an average daily volume of 27.6 million for the rest of 2021. There didn’t seem to be any news that was moving the stock either. AMC and GameStop stock movements have been more closely linked to technical trading indicators such as options volume, short-seller activity, and social media-fueled momentum. AMC and GameStop would have to make some rather big assumptions to justify their recent values, according to Barron’s. Many research analysts covering equities based on basic reasons have failed to execute their jobs, and others have stopped covering the stocks entirely. On Reddit, fans are anticipating a MOASS, or “mother of all short squeezes,” which would drive meme stocks to new highs due to exaggerated short seller demand. GameStop and other meme stocks have been forecast to crash by analysts such as Michael Burry of “The Big Short” fame. Connor Smith can be reached at connor.smith@barrons.com./n
