Call it revenge for memes.
After punching for the first three days of the week, GameStop Corp. shares. GME,
was fired on Thursday, aided by retailers who remain emotionally engaged with the video game retailer even after the shares were hammered 24 hours earlier.
Meanwhile, shares of the AMC Entertainment Holdings AMC movie chain,
the session also featured another popular value among retailers of social media platforms such as Reddit and Discord.
AMC closed trading above 21% on Thursday, while GameStop rose nearly 53%, more than offset Wednesday’s 40.5% loss, which represented the worst day in seven weeks, after disappointing results quarterly reported after the close of regular trading hours on Tuesday.
A user of the Reddit board r / WallStreetBets posted on Thursday after the bell, “WE ARE ALL WITNESSES,” that sums up the feeling of the GameStop bulls in the place they had encouraged each other to “buy the dip” presented by the company’s earnings report. , and stick it to hedge funds that many Reddit and Discord users still perceive as existential threats to free profits.
Looks like the campaign to buy GameStop has worked. Fidelity data shows that stocks were the most traded transactions by retail customers on Thursday with a buy-sell ratio of almost 3 to 1.
GameStop fans got an extra boost until the last hour of negotiation when Chewy founder Ryan Cohen and a member of the GameStop board released a cryptic tweet that his followers interpreted bullishly.
Cohen’s message — the first in more than two weeks — was a clip of “Ted,” Seth MacFarlane’s bloody live-action comedy about the childish bond between a stuffed-mouthed teddy bear and a weed smoker. and his human friend John, played by Mark Wahlberg.
“Growing taller!” one of Cohen’s followers responded on Twitter.
AMC, which was the fifth most popular stock on Thursday according to Fidelity, with buyers outpacing sellers, also benefited from social media campaigns aimed at tearing down hedging funds that were short-term.
Message boards have been spreading unverified rumors that major mutual funds and market makers were betting heavily that AMC’s shares would end up sinking in value.
Still, little was said about the fact that Walt Disney Co. DIS,
announced Tuesday that it would release two of its summer blockbuster hits “Black Widow” and “Cruella” simultaneously in theaters and streaming at Disney +, which in theory would offer a bona fide hit to competing movie chains, including AMC, at least in the short term.
On Thursday, these theories of the conspiracy and potential business loss of major film producers were set aside.
“It simply came to our notice then. I got it all back today, “a Redditor posted.” I’d rather have that than two boring flat days. I love that shit. “
In the end, the typical buying strategy and first of the people on Reddit bore fruit again, at least in the short term.
However, for the week, GameStop shares forecast a weekly decline of 8.3% and AMC Entertainment shares fall above 21%.