Investors have gone along for the ride, vowing to hold on until they put the final nail in the coffin of short-sellers.
Despite the volatility, shares of AMC Entertainment, in particular, have already almost doubled in price this week despite Thursday’s decline of close to 20%. AMC appears to be the tide lifting the meme-stock boat as other names including MicroVision, BlackBerry, Bed Bath & Beyond, Koss Corp and GameStop have either flipped green or are off their lows of the day.
Wall Street analysts are doing the best they can keeping up with the WallStreetBets movement, which has seen individual investors gain influence in the stock market rally. Most recently, Wedbush Securities has shown its true colors, which apparently is a gray area. After shares of AMC touched on USD 60 this week, the firm lifted its price target on the stock by USD 1 to USD 7.50. At the same time, however, Wedbush analyst Alicia Reese also suggested a “justified price target” would be “as high as USD 10,” saying in a report,
“AMC has made the best of its current ‘Meme Stock’ status by selling shares at a premium, and has raised significant capital doing so.”
BlackBerry or Bust
Another meme stock that is getting a lot of attention lately is BlackBerry. In the month of June so far, BlackBerry, the company behind the physical mobile keyboard that is making a comeback, is up nearly 30% to USD 15.
The stock is coming off its strongest trading day ever based on trading volume after 528 million shares changed hands on Thursday, as per FactSet data cited by Barron’s, compared to today’s 104 million in volume as of midday today. For context, BlackBerry’s trading volume has only surpassed the 200 million threshold on eight separate occasions since the stock started trading.
BlackBerry is trading below its highs of the year, since soaring to nearly USD 29 in January 2021, its highest level in a decade. After seeing what they could do to GameStop and AMC, the WallStreetBets crowd is reaching for the stars with BlackBerry, with visions of the company becoming the next Apple dancing in their heads.
For a look at all of today’s economic events, check out our economic calendar.