Thornton McEnery, 08 July 2021
Retail traders spent Thursday morning buying the dip created by all the people digging the graves of meme stocks on Tuesday and Wednesday.
Shares of GameStop GME, -0.08% and AMC Entertainment AMC, -3.65% started the holiday-shortened week in something of a nosedive, with both falling sharply from Tuesday morning into midday Thursday before sudden potent rallies fueled by Reddit chatter and Twitter hashtags saw both stocks recover dramatically, and AMC almost erase its weekly loss entirely before falling back a bit in the afternoon.
Going into Tuesday, the narrative around Wall Street was that a malaise had gripped meme stocks thanks to retail traders losing interest as the COVID pandemic slowly ebbs and summer lures many of them away from the daily grind of the markets, while some Wall Street analysts have even made the decision to stop covering meme stocks arguing that they don’t trade on cogent analysis.
And while news of GameStop picking up more fulfillment space sparked loud whispers on social media, and AMC’s chief executive may have made a massive concession to the individual investors that own perhaps 80% of his company’s float, the only thing that appeared to get meme bulls charging again was growing chatter that they were done fighting.
As headlines blared news that meme stocks were entering a bear market using the power duo as an example, retail investors who commonly refer to themselves as “Apes,” began to organize using one of their favorite weapons: hashtags.