Memes are forever memes - Part 1
As we observe, Donald Trump's meme stock skyrocketed in March but has now crash-landed. Similar to most of the meme stocks in the market, their explosive rise and dramatic fall show how powerful people can wield their influence to create vast amounts of stock-market wealth, but it doesn't last long without a real business behind it.
Let's continue with our weekly meme stocks analysis. As usual, the first one will be AMC. Out of expectation, AMC began to rebound since earlier this week. Last year AMC rode the popularity of concert movies from Beyoncé and Taylor Swift. The movie-theater chain reaped the benefits of "Renaissance: A Film by Beyoncé" and the record-breaking "Taylor Swift: The Eras Tour." In addition to showing the concert movies in its theaters, AMC was also a distributor for the films.
Chart wise, AMC started to show some reversal pattern by forming a first higher low this week. If another higher low is formed again next week, swe could expect a short term rally $AMC Entertainment(AMC)$
AMC daily chart
Now, let's talk about FFIE. Faraday Future made wild revenue projections of $504 million in 2022, $10.5 billion in 2024, and $21.5 billion in 2025. However, it has no revenue, had a $500 million loss in 2022, needs updated financials, and has little or no cash. The performance of the company is directly reflected in its share price, which tumbled over 99.99% from its peak. Could you imagine that?
By looking at this company chart, it is still aligned with my previous prediction. The stock moves within its downtrend channel and without any sign of rebound yet at this moment. Therefore, an easy vote for $Faraday Future Intelligent Electric Inc.(FFIE)$
FFIE daily chart
Next, we will look at Rivian. RIVN has experienced a significant decline in its stock price since its last quarterly report on December 31, 2023. It is down 62.9% in this period and down 36.6% year-over-year.
Its Amazon partnerships propped up investors' hopes on its potential. However, a single partnership does not make the company. RIVN shares took a nose dive after its underwhelming report in February 2024. It didn't just miss targets. It also laid off workers and lowered its guidance. These potential issues are firmly pointing to more trouble ahead.
RIVN daily chart
By looking at Rivian technical chart above, after breaking below it's double bottom support at around 10 USD, the stock plunges and I believe the stock will just continue to drop $Rivian Automotive, Inc.(RIVN)$
Have you learnt the lessons behind the meme stocks investment? You need to be extremely skillful and only execute short term trade for meme stocks, as their trend can reverse in an extremely fast pace.@TigerGPT
@CaptainTiger @TigerStars @MillionaireTiger @Tiger_comments @TigerWire
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AMC Entertainment (AMC) Analysis
Business Overview and Future Growth
AMC Entertainment Holdings Inc. is a movie theater chain that has experienced volatility in its stock price due to its association with meme stocks. While AMC benefited from the popularity of concert movies from artists like Beyoncé and Taylor Swift in the past, its long-term growth prospects are uncertain. The company has faced challenges, including a soft box office in the first quarter of this year and a high level of debt.
Earnings Analysis
AMC's recent earnings report showed a larger-than-expected quarterly loss, primarily due to higher distribution costs for concert movies and a lack of big releases from Hollywood. The company's earnings forecast for the future is also negative, with projected losses in the coming years.
Stock Trend Analysis
AMC's stock has shown some signs of rebounding recently, with a 10.1% gain on Tuesday and a 5.51% increase in premarket trading on Wednesday. However, the stock's overall trend remains volatile, and it is currently trading at around $3.16 per share. The support price is at $2.82, while the resistance price is at $3.66.
Analyst Viewpoints and Target Price
Analysts have mixed opinions on AMC stock, with a consensus recommendation of 4 holds, 2 underperforms, and 1 sell. The mean target price is $4.62, with a low estimate of $3.10 and a high estimate of $8.00.
Recent News and Impact on Stock Price
Recent news articles suggest that meme stocks like AMC have made a resurgence, but the intensity of the meme stock frenzy has not reached the levels seen in 2021. The stock's performance is influenced by factors such as interest from Reddit traders, Hollywood releases, and the company's debt situation. It is important to note that meme stocks can be highly volatile and subject to rapid reversals in trend.
Risk Disclaimer
The information provided above is for reference purposes only and should not be considered as investment advice. Investing in meme stocks like AMC Entertainment carries inherent risks, including volatility and the potential for significant losses. It is crucial to conduct thorough research, consider one's risk tolerance, and make independent investment decisions.
Please note that the above analysis is based on the available information and market conditions at the time of writing. The stock market is dynamic, and new developments may impact the stock's performance.