To The Moon

$AMC Entertainment(AMC)$   and $Faraday Future Intelligent Electric Inc.(FFIE)$   have been in the spotlight lately, as their stocks had risen to the moon despite absence of news and lack of fundamental improvements that would justify the rally

Their spectacular rises in these couple of weeks are suspected to be the work of the meme community, whose collective actions in short-squeezing the stocks have sent short-sellers fleeing for covers. The trading frenzy in the meme stocks that has been reignited appears to be unfazed in the near term, as traders liquidate their short positions to avoid falling into traps by the bullish run-ups.

Faraday Future will be reporting its latest earnings on 28 May, when results are widely expected to be disappointing amidst slowing demands for electric vehicles and operational woes. It will be D-day whether the fundamentalists or the meme community will prevail. For now, Faraday Future appears to have averted a delisting risk as its share price recovers above $1, the minimum bid price requirement imposed by the Nasdaq to avoid being delisted.

While I believe that the recent run-ups are unjustified and driven by greed, given the deteriorating fundamentals of the two companies, I suspect that there may be more steam to the forward momentum in the short run. While they are vulnerable to deep crashes when fundamental judgments return to take control, I think the time has not yet arrived given the formidable undercurrent, and it will be risky to bet against the meme frenzy for now. And, if you can't beat them, join them.

@MillionaireTiger @VideoLounge @CaptainTiger @TigerEvents @TigerWire