Call it the revenge of meme actions.
After taking a beating during the first three days of the week, GameStop Corp. GME shares,
skyrocketed Thursday, aided by retailers who remain emotionally engaged with the video game retailer even after stocks were hit 24 hours earlier.
Meanwhile, the shares of the film chain AMC Entertainment Holdings AMC,
Another popular action among retailers on social media platforms like Reddit and Discord, also featured in the session.
AMC closed trading Thursday with an increase of more than 21%, while GameStop increased almost 53%, more than offsetting the loss of 40.5% on Wednesday, which represented the worst day in seven weeks, after its disappointing Quarterly results reported after the close of regular business hours on Tuesday. .
“WE ARE ALL WITNESSES,” posted a Reddit board user r / WallStreetBets after the bell on Thursday, summing up sentiment from the GameStop bulls on the site who had been encouraging each other to “buy the drop” presented by the company’s lackluster earnings report. and stick it to hedge funds that many Reddit and Discord users still perceive as existential threats to unlimited profits.
The campaign to buy GameStop seems to have worked. Data from Fidelity shows that the stock was the most traded by retail clients on Thursday with a buy-sell ratio of nearly 3 to 1.
GameStop fans got an added boost in the last hour of negotiation when Ryan Cohen, the founder of Chewy and a member of the GameStop board, released a cryptic tweet that his followers were interpreting optimistically.
Cohen’s message, his first in more than two weeks, was a clip from “Ted,” Seth MacFarlane’s sassy live-action comedy about the childhood bond between a pot-smoking teddy bear and his human friend John. , played by Mark. Wahlberg.
“Higher and higher!” replied one of Cohen’s followers on Twitter.
AMC, which was Thursday’s fifth most popular stock according to Fidelity with buyers outnumbering sellers, also benefited from social media campaigns aimed at unseating hedge funds that were short on the stock.
Message boards have been spreading unverified rumors that major mutual funds and market makers were betting heavily that AMC shares would eventually drop in value.
However, little was said about the fact that Walt Disney Co. DIS,
announced Tuesday that it would release two of its summer blockbusters “Black Widow” and “Cruella” simultaneously in theaters and airing on Disney +, which in theory would deliver a genuine hit for warring movie networks, including AMC, at least in the near term.
Those conspiracy theories and the possible loss of business from major movie producers were dismissed Thursday.
“Yesterday he suffered a great loss. I got it all back today, ”posted a Redditor. “I’d rather this than two boring days. I love this shit. “
In the end, the typical Reddit strategy of buying first and asking questions later paid off again, at least in the short term.
However, during the week, GameStop shares are experiencing a week-to-date decline of 8.3% and AMC Entertainment shares are down more than 21%.