Another day, another round of earnings for Reddit stocks GameStop (NYSE:GME), AMC entertainment (NYSE:AMC), Blackberry (NYSE:Bed and breakfast) Y Nokia (NYSE:Bed and breakfast). This time, there doesn’t appear to be any company-specific news. With that in mind, what do you need to know about GME, BB, NOK and AMC stocks right now?
As a reminder, Reddit shares have been on the move since last week, following the news that GameStop CFO Jim Bell was resigning at the end of March. Investors are hopeful that activist investor and board member Ryan Cohen can flex some muscles with the new CFO. If Cohen can bring in someone with e-commerce or technology expertise, GameStop could change. Consider the continued excitement of short bets and the power of r / WallStreetBets, and you have a recipe for a rally.
This week, that energy continues. BlackBerry, Nokia and AMC each won on Monday. GameStop was a real winner, with stocks closing higher by more than 18%.
At this point, there aren’t many more Reddit-specific actions on the move. Redditors continue to support stocks, encouraging each other to buy more and keep holding. Some expect GME shares to touch up $ 500, or even go as high as $ 800.
However, there is one key thing investors should keep in mind …
Reddit shares meet with Congress, take two
President Joe Biden selected Gary Gensler to head the US Securities and Exchange Commission and Rohit Chopra to head the Office of Consumer Financial Protection. Tomorrow, Gensler and Chopra are due to appear before the Senate Committee on Banking, Housing and Urban Affairs. There, they will give a glimpse of a new era of market surveillance. They will also have the difficult task of answering questions from Congress on everything from income inequality to cryptocurrencies.
One item on the agenda is GameStop and, more generally, the rise of meme stocks. What will Gensler and Chopra say about the frenzy? And perhaps most importantly, what will they argue about the role of social media? With the SEC already paying close attention to the use of social media in stock price manipulation, your interpretation of what happens on r / WallStreetBets is key. Also, as Bloomberg reported, Gensler and Chopra will discuss protections for unsophisticated retail investors and payment for order flow. Both issues have been occupying quite a bit of ground on Wall Street lately.
Keep an eye out for actions on Reddit. The rocket ride is not over yet.
As of the date of publication, Sarah Smith did not hold (directly or indirectly) any position in the securities mentioned in this article.
Sarah Smith is a Web Content Producer at InvestorPlace.com.