Meme Stock Nation, We’re BAAAaaaaack

Happy Wednesday to all my enjoyers.

I’m a Dallas Mavericks fan so I’m having a hard time getting anything done this Wednesday out of pure excitement to watch the beginning of an unreal Western Conference finals series tonight against the Timberwolves.

This is not investment advice and is intended for entertainment purposes only.

Meme Stock Nation, We’re BAAAaaaaack

I’m an ex-Robinhood employee, of course I’m writing about meme stocks this week.

The Meme Stocks, primarily Gamestop ($GME) and AMC Entertainment Holdings ($AMC), are throwing it back to the spring of 2021.

Remember when a record number of retail investors bought shares of $GME and $AMC which had significant short positions on them from institutional investors and then created a “Six Sigma Event” which many Brokerage Firms ended up making it to where these stocks were in a “position closing only” status and it was all over the news and now there’s a movie about the whole she-bang?

It was wild.

On that fateful day, I was working at Robinhood on the brokerage team but had taken the morning off to get some cavities filled… I watched as Robinhood flooded the news playing quietly on a TV attached to the ceiling from a reclined dental chair as some dude had his hands all up in my mouth.

I went home and logged into my work laptop and it was… CHAOS.

Now it’s been a few years of business as usual for these stocks until the last two weeks when there was extreme volatility again.

So… what poked the bear?

Or rather, what poked the Kitty?

Roaring Kitty, a “Fin-fluencer” who uses Reddit and Youtube to talk about his own portfolio and has extreme influence over the Meme stock investing community made a comeback after a 3-year hiatus.

After a cryptic posting on X from Roaring Kitty, On Monday, May 13, 2024, GameStop's shares surged by 74% and AMC's by 78%.

The rally continued into the following day, with GameStop and AMC extending their gains to 158% and 132%… naturally this triggered another short squeeze.

Short Sellers had close to a $1 BIL cumulative loss after Monday’s activities forcing many to cover their positions and buy the stocks (driving the price even higher).

Now that the dust is settled…

Since their peaks in the spring of 2021, both $AMC and $GME have seen major decline in their price… even with this last meme stock frenzy.

• $GME Peak on January 27, 2021: $86.88 

• $GME Price as of 05/21/24: $22.12

That’s a dip alright.

$AMC used the whole frenzy to sell off shares and raise some much-needed capital.

So check on your Wall Street Bets friends because it’s been a wild last few weeks for them.

Weekly Tidbits

• T+1 Coming to you’re Local Brokerage Firm on May 28th: I wrote about this a while back because it’s big news for shorter settlement times. (you can get that cash money faster after making a trade)

• A Shell of a Company: This weekend Red Lobster filed for Chapter 11 bankruptcy, saying it’s endless shrimp promotion lost them around $11 million… that’s a lot of shrimp.

• In $NVDA we trust i guess?: After market close today, NVIDIA announces earnings which is likely to have a big splash on the markets which have posted all-time highs earlier this week. “The report is expected to be one of the most consequential for investors this year, as Nvidia has been at the center of the AI boom driving markets over the last 18 months.”

Meme of the Week

Credit (me lol) @Courtneymmmmmm