Shares of $AMC Entertainment(AMC)$ had surged this week, despite no apparent good news, other than a dismissal of bankruptcy by its CEO last week to allay worries over the company's viability as a going concern. The rise of online streaming services and their growing popularity have weighed on AMC, whose profits in the fourth quarter of last year had been disappointing. With rising competition from the online streaming service providers, AMC has better quickly reinvent itself to stay competitive and remain relevant post pandemic, as the pandemic has changed forever the way many people would watch movies. Until a sound turnaround strategy is in place in its management, I believe that AMC's stock price has risen ahead of its fundamentals.
Similarly, cryptocurrency exchange $Coinbase Global, Inc.(COIN)$ has been weighed under the prevailing correction in the crypto market amidst expectation of interest rates staying higher for longer on the back of a sticky inflation. This is not helped by the uncertainty over whether the impending bitcoin halving event will turn out to be another "buy the rumour, sell the news" episode. Nevertheless, expectations of rate cuts in the later part of this year should help to support its stock price as lower borrowing costs will encourage trading of risky assets like cryptocurrencies, while Coinbase also benefits from increased trading volume on cryptocurrencies by the bitcoin spot ETFs.
The proliferation of AI applications and the corresponding rising demands for various semiconductor chips to drive the AI engines are propelling growth of the semiconductor industry $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ . With more and more companies jumping onto the artificial intelligence bandwagon to embrace AI solutions, the enormous investments being spent on AI chips spell well for the semiconductor industry. Riding on the AI frenzy wave also include $Palantir Technologies Inc.(PLTR)$ and $C3.ai, Inc.(AI)$ , which have been among the forerunners in launching their enterprise AI software and services, as businesses rush to build their enterprise-scale AI applications as part of their strategies to accelerate automation of their operations and digital transformations of their businesses to improve productivity and profitability. Hence, I believe that the AI engine will propel these stocks to greater heights.
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