The meme stock craze is back: AMC, GameStop and Bed Bath & Beyond soar
Meme mania has returned to the stock market with a vengeance.
Shares of movie theater chain AMC, video game retailer GameStop and struggling home furnishings retailer Bed Bath & Beyond soared Monday, extending last week's big gains.
AMC was up 16% and has now spiked 70% in just the past five trading days while Bed Bath & Beyond shot up 40% Monday and has more than doubled in the past week. GameStop rose 12% Monday and has gained 30% in the last five days.
What's going on? All three consumer stocks have rabid followings among individual investors on Reddit and other social media sites. These investors are hoping to punish professional hedge funds and big institutional firms who have bet against these stocks by short-selling them. Short sellers profit when a stock goes down.
This army of traders has galvanized on Reddit to support these so-called meme stocks —even though there are serious questions about the companies' fundamentals. All three firms are expected to lose money this year and next.
Streaming media services and gaming downloads pose challenges for AMC and GameStop. Bed Bath & Beyond just ousted its CEO following less than three years on the job after the company reported lousy results in June.
GameStop chairman Ryan Cohen, who also founded online pet retailer Chewy, tweeted after GameStop announced a new NFT marketplace in July that the "left for dead retailer just launched something new." The tweet ended with the flushed face emoji.
Cohen's RC Ventures firm is the top investor in GameStop and also has recently bought a big stake in Bed Bath & Beyond.
AMC is taking its appreciation for the apes one step further. The company announced earlier this month that it plans to reward shareholders with a special dividend to be paid in the form of an AMC Preferred Equity unit, a new class of stock that AMC has applied to list on the New York Stock Exchange under the ticker symbol "APE."
AMC CEO Adam Aron said in a press release that the company is "rewarding and recognizing our passionate and supportive shareholder base." AMC also intends to issue an "I OWN APE" NFT exclusively to those investors.
Even as short sellers continue to circle these meme stocks, the apes may have the upper hand for now.
AMC shares are down 5% this year. That's not as bad as the broader market and is a relatively small loss considering the stock soared nearly 1,200% in 2021. GameStop is up more than 20% in 2022, following a nearly 700% pop last year. Bed Bath & Beyond is still down more than 20% on the year, though, despite the recent surge.
When it comes to uncomfortable conversations, matters of inheritance may be near the top of the list. But as the cost of living rises and the generational wage gap grows wider, experts say it is now more important than ever to open up that dialogue.
Canadian employers are anticipating the highest salary increase in two decades as they try to balance inflationary pressures, surging interest rates, recession risks and a tight labour market, a new survey has found.
Along with a high inflation rate, Canadians are also contending with a loonie that's dropping in value. Personal finance columnist Christopher Liew explains the impact this will have on your personal finances, and tips to make your money go further.
Canadian shoppers are spending more at the grocery store, but bananas, tofu and flour remain affordable despite inflation.
Amid soaring prices at grocery stores, a new survey has found that 24 per cent of Canadians have had to cut back on the amount of food they were buying.
Tipping fatigue is hitting consumers as requests for gratuities increase and spread to new businesses amid the rise of automated payment machines and preset tip suggestions.
A new study shows Canadians are charging slightly less to their primary credit cards than they did a year ago as inflation remains high and buy now, pay later services grow more prominent.
A new study has found that the pandemic provided Canadians the opportunity to rethink their financial goals, with many moving, switching careers and planning to travel.