Meme stocks - AMC & FFIE
For the past few weeks, market was hot again with meme stocks like Reddit, DXYZ, DJT, ALAB, etc... Most of them were having a very short term big gain and eventually retraced back to square within a short time as well. Investing in meme stocks is never easy as you need some luck and high level of technical analysis skill.
As usual, let's look in a two classic meme stocks that I have done their analysis through technical charts, on weekly basic.
AMC
Let's begin with AMC. Recently, we heard that Fandango veteran Stephanie Terifay has been tapped to help AMC Theatres build out its new movie distribution business following the record-shattering success of Taylor Swift's Eras Tour tour and Renaissance. This might be a good news to the company.
AMC daily chart
If we look at its technical chart above, the stock formed a second higher low last week and this might be a sign of forming a new upwards trend. It started well early this week but slowly erased its gain over the week but managed to raise back last night. For me, as long as the share price stays above the support at 2.90 USD, AMC should engage into a short term rally towards target price of 4 USD, which is over 20% gain from current price. Therefore, I look good on $AMC Entertainment(AMC)$
FFIE
Another meme stock that I share weekly is FFIE. The company had previously filed Form 12b-25 with the SEC on April 2 and disclosed that it was unable to file Form 10-K on time without unreasonable effort or expense. The company plans to file the report by the end of April but cannot predict with certainty when the preparation and filing of the form will be completed. Along with its delay in filing the annual financial report, Faraday Future still faces uncertainty with its listing on Nasdaq because of its low stock price.
FFIE super bearish daily chart
Let's look at Faraday technical chart. As we can observe obviously above, the stock price stays well within the downtrend parallel channel since early this year. Until now, there's no any sign of trend reversal and I strongly believe that $Faraday Future Intelligent Electric Inc.(FFIE)$
Usually, many meme stock investors have a much shorter time horizon in mind as they look to quickly flip speculative assets if the price spikes to turn a hefty profit. However, the risk of investing in meme stocks is more like a betting. Hope you like my analysis and sharing on meme stocks.
@CaptainTiger @TigerStars @MillionaireTiger @Tiger_comments @TigerGPT
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AMC Entertainment (AMC)
AMC Entertainment is a company in the entertainment industry, primarily operating movie theaters. The company has been in the spotlight recently due to the surge in meme stock trading.
The future growth of the movie theater industry is dependent on various factors, including the recovery of the global economy, consumer sentiment towards movie-going, and the release of highly anticipated films.
In terms of earnings, AMC has reported a negative EPS in the most recent quarter. However, the earnings forecast for the future shows a potential improvement, with a projected EPS of -0.80 USD for 2025FY and -0.29 USD for 2026FY.
The recent capital flow data indicates mixed investor sentiment, with fluctuations in the number of units bought and sold. It is important to note that meme stocks like AMC can experience high volatility due to speculative trading.
From a technical analysis perspective, AMC's stock price has formed a second higher low, indicating a potential upward trend. As long as the share price stays above the support level at 2.90 USD, there is a possibility of a short-term rally towards a target price of 4 USD.
Analysts have provided a range of target price estimates for AMC, with a mean estimate of 4.62 USD, a low estimate of 3.10 USD, and a high estimate of 8.00 USD. The analyst recommendation for AMC is mixed, with 4 hold, 2 underperform, and 1 sell ratings.
Faraday Future Intelligent Electric Inc. (FFIE)
Faraday Future Intelligent Electric Inc. is an electric vehicle (EV) company. The future growth of the EV industry is driven by factors such as increasing demand for sustainable transportation, government incentives, and advancements in EV technology.
In terms of earnings, FFIE has reported a negative EPS in the most recent quarter. The earnings forecast for the future shows a challenging outlook, with a projected EPS of -12.18 USD for 2025FY and -47.97 USD for 2023FY.
The recent capital flow data for FFIE indicates mixed investor sentiment, with fluctuations in the number of units bought and sold. It is important to note that meme stocks like FFIE can experience high volatility due to speculative trading.
From a technical analysis perspective, FFIE's stock price has been in a downtrend since early this year, with no signs of a trend reversal. The stock is currently trading near the support level of 0.0451 USD.
There is limited analyst coverage for FFIE, with only one hold rating available.
Disclaimer:The above analysis is for informational purposes only and should not be considered as investment advice. Investing in meme stocks like AMC and FFIE carries significant risks due to their high volatility and speculative nature. It is important to conduct thorough research, consider your risk tolerance, and consult with a financial advisor before making any investment decisions.