GME, AMC, FFIE: Meme Stocks Rising Again?
$Faraday Future Intelligent Electric Inc.(FFIE)$
Meme Stock Musketeers: Tale of Volatility
The past five days have been a wild ride for the infamous meme stocks – $GameStop(GME)$ , $AMC Entertainment(AMC)$
Looking their performances, is there a parallelism that could be drawn to the literary Musketeers.
GME and AMC.
Both GME and AMC experienced a surge after popular investor Keith Gill ("Roaring Kitty") re-emerged online. (see above_
Pre-market trading saw GME spiking over +78% and AMC over +23%.
This mirrored their 2021 rallies, that was fueled by social media hype and a potential short squeeze.
However, reality set in quickly.
Both stocks gave up most of their gains within a day, highlighting the fleeting nature of meme-driven volatility.
Latest.
On Sun, 02 Jun 2024, over at Reddit - user "DeepF***ingValue (account believed to be tied to Roaring Kitty), posted a screenshot showing nearly $175 million paid for a position in GME.
This was enough to for GME to gain as much as +75% at the market open before paring gains throughout the session.
Shares closed at $46.55 per share on Thursday, rising once again. (see above)
FFIE: The Electric Newcomer
While GME and AMC faltered, FFIE, an electric vehicle startup, skyrocketed over +1300% in the past week. (see above)
This surge was not fueled by Gill, but by retail investor interest after a previous short squeeze.
Just as it had swiftly ascended into stratosphere, it fell back to Earth in similar fashion.
With FFIE's fundamentals remain uncertain, concerns about a potential bubble is at the back of everyone’s mind.
GME’s recent surge has some rub-off effect on FFIE too. Its share recovered some grounds to end Thursday with a +2.35% gain.
Musketeer Parallel Universe.
It is a challenge to draw parallelism between classic French literature on the 3 Musketeers and the 3 Meme stocks.
In fact, it is a bit of a stretch.
Unlike the novel’s original “inseparable trio”, the 3 meme stocks move based on individual forces:
- Gill's influence for GME and AMC.
- Short squeeze dynamics for FFIE.
The Link.
Between the novel and the meme stock lies a thematic link.
The Musketeers were united by a common goal of protecting the Queen.
The idea is, the “Queen” could be regarded as retail investor challenging the Wall Street.
Both GME and AMC, veterans, have witnessed the dangers of this fight.
FFIE, the newcomer, is experiencing its first skirmish.
Allure (and Peril) of Meme Stocks
The past 5 days underscore the meme stock phenomenon's core:
- Immense volatility driven by social media.
- Short squeezes.
This could lead to quick gains.
However, it also carries high risks, especially for those chasing short-term profits.
Whether these meme stocks find their "happily ever after" or succumb to market realities remains to be seen.
One thing's for sure – the saga is far from over !
- Do you think GME, AMC and FFIE will continue to bubble up this week ?
- Do you think there will be more “news” coming from Roaring Kitty, soon?
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But $iShares Russell 2000 ETF(IWM)$ didn’t go up
It’s hard to play with the meme stocks
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$Faraday Future Intelligent Electric Inc.(FFIE)$ not even reaches $1.00
Please award the 5p Tiger coin for this Post from last week. Thanks. @TigerWire