Analyzing Meme Stocks with Technical Insights
Investing in meme stocks can be highly speculative and volatile. These stocks often gain popularity through social media and internet forums rather than strong fundamentals. While some investors have seen significant short-term gains, others have faced substantial losses. It's crucial to approach such investments with caution, do thorough research, and consider your risk tolerance. Let's look at several meme stocks today:
AMC
The outlook for AMC Entertainment is poor as it is hurt by the structurally weak movie theater sector and slowing U.S. economy. Even the release of more popular films won't allow it to generate nearly enough profit to afford its upcoming debt payments.
AMC daily chart
If we look at AMC chart from technical aspect, AMC seems to have a strong support at EMA50 (blue coloured EMA line). As shown in the highlighted circles, for the past 2 months, the share price has rebounded well once it touched the EMA50 line, for at least 3-4 times. This week, AMC showed the similar pattern (somewhere very close to the EMA50 blue coloured line) and I believe this will cause AMC $AMC Entertainment(AMC)$
FFIE
Faraday Future shares tumbled after the electric vehicle startup announced a reverse stock split. In a statement released Thursday, the company said that the 1-for-40 reverse stock split is expected to become on Aug 16. FFIE common stock is expected to begin trading on a split-adjusted basis upon market open Aug 19.
FFIE daily chart
Technically, it is clear that another crash is on going for FFIE. If you recall, you can see how Faraday Future rallied every time and plummeted directly a few days after that, within a short period of time. I cannot see any sign of rebound for the stock right now. With all the bearish technical indications such as dead cross and all EMA lines curve downwards, I believe FFIE $Faraday Future Intelligent Electric Inc.(FFIE)$
COIN
Coinbase has announced plans to launch cbBTC, a wrapped version of Bitcoin, on its Base network. Although the details are not yet disclosed, this move aims to expand Coinbase's tokenized asset offerings and potentially reshape the landscape of wrapped Bitcoin. As demand for tokenized Bitcoin on Ethereum-compatible chains grows, Coinbase's entry into this space could significantly impact market dynamics.
COIN daily chart
For COIN, the stock retraced following the bearish market sentiment in crypto sector this week. Moreover, the share price failed to sustain above EMA50 trendline support. We can also see a dead cross ❌ formation between EMA 25 and EMA 50 this week. But then for short term, it seems like COIN successfully stands back above its EMA200 support (Green line) which is a good sign of reaching a short term bottom. For such, I give Coinbase $Coinbase Global, Inc.(COIN)$
Rivian
Rivian Automotive has been pulling back over the past month. The electric van and truck maker's latest quarterly earnings release has done little to drive a positive sentiment shift for Rivian stock. As seen from Rivian's results and guidance, the auto sector's current slump is likely to continue impacting this early-stage EV company's growth and margins in the quarters ahead.
Rivian daily chart
For Rivian, the share price retraced together with the bearish market and it seemed to struggle to stay above EMA 200 support this week. This week was a critical week for Rivian where its share price must stand back above to EMA200 but it fails to do so, therefore we will see a continuous correction in Rivian price. Continue to be a bearish vote $Rivian Automotive, Inc.(RIVN)$
SE
A 40% jump in sales for Singapore's Shopee helped its parent Sea Limited post strong earnings. CEO Forrest Li said Shopee will become adjusted EBITDA-positive starting in the third quarter. Sea's gaming and financial services businesses also saw double-digit growth.
SE daily chart
By referring to the chart above, two week ago, Sea plummeted below it's EMA200 which acted as a very strong support and the share price immediately rebounded from there. The movement was so bullish until the share price directly broke the recent new high at 76.60 USD, without any sign of pullback yet. For such, I believe Sea $Sea Ltd(SE)$
Do you like meme stocks? Which meme stocks have you invested in before? Do you make huge profits or losses? Will you choose to buy the pull backed AI stocks or still meme stocks?
@TigerStars @Tiger_comments @CaptainTiger @MillionaireTiger @TigerGPT
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
AMC Entertainment (AMC)
Business and Industry: AMC Entertainment is a movie theater chain that operates in the United States and internationally. The company is part of the movie theater sector, which has been structurally weak due to changing consumer preferences and the impact of streaming services. The slowing U.S. economy has also affected the company's performance.
Earnings Analysis: AMC's latest earnings report for Q2 2024 showed an EPS of $0.14. The company's gross profit margin was 41.63%, and it had a net profit margin of 2.10%. The return on investment was 1.87%. However, it's important to note that the movie theater industry has been heavily impacted by the COVID-19 pandemic, and AMC's financial performance has been affected as a result.
Technical Analysis: From a technical perspective, AMC has shown a strong support level at the EMA50 (blue colored EMA line) on the daily chart. Over the past two months, the share price has rebounded multiple times when it touched the EMA50 line. This week, AMC has shown a similar pattern, indicating a potential surge in the near term.
Analyst Viewpoints: Analysts have a mixed view on AMC, with some recommending a hold or underperform rating. The target price estimates range from $3.20 to $8.00, with a mean estimate of $4.64.
Sea Ltd (SE)
Business and Industry: Sea Ltd is a Singapore-based company that operates digital entertainment, e-commerce, and digital financial services businesses. Its e-commerce platform, Shopee, has seen a 40% jump in sales, contributing to strong earnings. The company's CEO has stated that Shopee will become adjusted EBITDA-positive starting in the third quarter. Sea's gaming and financial services businesses have also experienced double-digit growth.
Earnings Analysis: Sea's latest earnings forecast for 2025FY shows a forecasted EPS of $-2.78. The company's gross income is forecasted to be $5.88 billion, and the forecasted EBIT is -$3.46 billion. It's important to note that these are forecasts and may be subject to change.
Technical Analysis: On the daily chart, Sea recently broke below its EMA200, which acted as a strong support level. However, the share price immediately rebounded and broke the recent new high at $76.60 without any sign of a pullback. This bullish movement suggests that Sea may continue to trend higher in the near term.
Analyst Viewpoints: Analysts have a positive view on Sea, with a majority recommending a buy or hold rating. The target price estimates range from $65.00 to $99.00, with a mean estimate of $86.99.
Rivian Automotive, Inc. (RIVN)
Business and Industry: Rivian Automotive is an electric vehicle manufacturer based in the United States. The company has gained significant attention and investment due to its innovative electric vehicle offerings. However, it's important to note that the electric vehicle industry is highly competitive and subject to regulatory and market risks.
Earnings Analysis: Rivian's latest earnings forecast for 2025FY shows a forecasted EPS of $-2.39. The company's gross income is forecasted to be $9.12 billion, and the forecasted EBIT is -$3.09 billion. It's important to note that these are forecasts and may be subject to change.
Technical Analysis: Rivian recently failed to stand back above its EMA200 on the weekly chart, indicating a potential continuous correction in the share price. From a technical perspective, it may be prudent to have a bearish view on Rivian unless it manages to stand back above its EMA200 line.
Analyst Viewpoints: Analysts have a mixed view on Rivian, with some recommending a buy or hold rating. The target price estimates range from $13.00 to $30.00, with a mean estimate of $17.97.
Please note that the above analysis is based on available information and should not be considered as investment advice. Investing in meme stocks can be highly speculative and volatile, and it's important to conduct thorough research and consider your risk tolerance before making any investment decisions.