GameStop and AMC Entertainment start softly as meme-stock giddiness cools

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The giddiness around so-called ‘meme stocks’ GameStop Corp (NYSE:GME) and AMC Entertainment Holdings (NYSE:AMC) Inc as Wednesday’s open hits the breaks on the sharp uptick seen yesterday.


GameStop shares traded lower in early deals changing hands at around US$204, down 2.7%, whilst AMC moved up 2.3% at US$45.


On Tuesday, GME and AMC soared 27% and 20% respectively as retail traders poured into the investment plays that were popularised earlier this year on Reddit internet forums.


The spike came with little to no spark of fundamentals, rather the army of Reddit traders woke up and hit the buy button.


It came as mainstream traders expected a quiet few days in the lead up to the Federal Reserve get-together at Jackson Hole, Wyoming.


Research group MyWallSt, in a note, said: “The self-branded ‘degenerates’ of the r/WallStreetBets community on Reddit are continuing to band together and target companies with high short interest in an effort to force a short squeeze and turbo-charge their returns.”


It added: “with AMC surpassing 200 million shares traded for the first time since mid-June and GameStop witnessing about 14 million shares changing hands – more than ten-times the amount typically traded over the past five sessions.”

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