Meme stocks steal the show amid renewed Reddit trader enthusiasm
Shares in AMC Entertainment skyrocketed yesterday, after the cinema chain surged 36% in an impressive one-day rally.
The company ended the day with its shares at $26.52 and a market value at $11.9 billion at the close of the session, representing a significant year-to-date increase of over 1,000%.
While AMC posted its highest close since May 12, 2017, rising 62% this week, shares in GameStop also rallied, ending the session with a weekly gain of 40%.
The double-digit rallies of the above so-called Reddit stocks have outperformed a largely quiet market, following enthusiasm from online retail traders.
This is the latest development in the captivating meme stock phenomenon, which has gripped the markets in recent times.
Such stocks are largely fuelled by social media, particularly the now infamous WallStreetBets subreddit page, which previously helped drive a retail trading frenzy back in January.
According to Bank of America analysis, AMC has now overtaken GameStop as the most-loved stock in the Reddit forum.
Evolution in the last 5 years:
- 2020: -69.90%
- 2019: -39.22%
- 2018: -20.99%
- 2017: -54.63%
- 2016: 42.53%
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