Start the conversation
Leave a Reply
You must be logged in to post a comment.
The bloom is off the rose. Meme stocks were one of the biggest and hottest trades of 2020 and 2021 with GameStock Corp. (NYSE: GME) jumping over 10,000% and AMC Entertainment Holdings Inc. (NYSE: AMC) up over 2000%. Now these stocks are trading near 52-week lows and the big question is, is there any juice left in the trade?
Shah, comes right out swinging...it's just a zombie stock without the high short interest that helped the stock skyrocket last year.
Most of these stocks are saddled with high debt and don't have any more tricks up their sleeves to keep investors coming back. GameStop reported a quarterly loss of $84 million last quarter and AMC is not looking much better.
They tried pushing a preferred class of stock, AMC Preferred Equity Units (NYSE: APE), which was a nod to meme stock traders, but that ticker has basically been a straight line down, dropping almost 90% in only a few short months.
While higher interest rates have zapped some of the speculative trading out of the market, Garrett Baldwin thinks there might be a little bit more juice left to squeeze. The only thing that matters according to Garrett is that people want to trade it and watching the VWAP could still make it a good stock to trade.
Watch here for what Money Morning Live experts are doing with these stocks.
Get the latest trading and investing recommendations straight to your inbox.