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Call it meme stocks revenge.
After taking some hits for the first three days of the week, the actions of GameStop Corp. GME,
soared on Thursday, aided by retail traders who remain emotionally engaged with the video game retailer, even after the shares were hammered 24 hours earlier.
Meanwhile, shares of the movie channel AMC Entertainment Holdings AMC,
another popular title among retail marketers on social media platforms like Reddit and Discord, also appeared on the session.
AMC on Thursday closed trade up more than 21%, while GameStop jumped nearly 53%, more than offsetting Wednesday’s 40.5% loss, which was the worst day in seven weeks, after its results Disappointing quarterly reports released after regular trading hours closed on Tuesday. .
“WE ARE ALL WITNESSES,” a Reddit chart user r / WallStreetBets posted after Thursday’s bell, summing up the sentiment of GameStop bulls on the site who had encouraged themselves to “buy the drop” presented by the lackluster earnings report society, and stick to the hedge funds that many Reddit and Discord users still perceive as existential threats to unfettered gains.
GameStop’s buying campaign seems to have worked. Fidelity data shows the stock was most actively traded by retail clients on Thursday with a buy-to-sell ratio of nearly 3 to 1.
GameStop fans got an extra boost in the last hour of trading when Ryan Cohen, founder of Chewy and GameStop board member, launched a cryptic tweet that his followers interpreted as bullish.
Cohen’s post – his first in over two weeks – was a preview of “Ted,” Seth MacFarlane’s scorching comedy about the childhood bond between a smoky, weed-mouthed teddy bear and his human friend. John, played by Mark Wahlberg.
“Higher and higher!” one of Cohen’s Twitter followers replied.
AMC, which was the fifth most popular Thursday stock according to Fidelity with more buyers than sellers, also took advantage of social media campaigns to overthrow hedge funds that were short.
Message boards spread unverified rumors that major investment funds and market makers were betting strongly that AMC shares would eventually lose value.
Little has been said, however, that Walt Disney Co. DIS,
announced Tuesday that it would launch two of its summer blockbusters “Black Widow” and “Cruella” simultaneously in theaters and streaming on Disney +, which in theory would provide real success for besieged movie chains, including AMC, in Canada. less in the short term.
These conspiracy theories and the potential loss of business for major film producers were ruled out on Thursday.
“Suffered a huge loss yesterday. I did everything back today, ”posted a Redditor. “I much prefer that than 2 days of boring flat. I love this shit. “
Ultimately, the typical strategy of buying first and asking questions later from the Reddit crowd was back to paying off, at least in the short term.
For the week, however, GameStop’s stock is looking down 8.3% since the start of the week, and AMC Entertainment’s shares are down more than 21%.
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