AMC After Hours: AMC Entertainment Holdings Inc Cl A Stock Quote
Shares of GameStop Corp. have undergone a sharp correction over the past week as they posted a record winning streak, but it wasn't enough to cool off the new meme-stock frenzy.
Despite their own setbacks, other meme stocks posted strong weekly gains, suggesting investors have some appetite for risk despite multiple macro concerns.
GameStop shares GME, -2.54%, rose 5.3% by lunchtime Friday after the video game retailer said overnight that it intends to more than triple the number of shares outstanding to 1 billion to avoid a stock split. Read more about GameStop's stock split plan.
That puts the stock on track for a three-day losing streak, down 12.1%. The pullback sparked a 10-day winning streak, the longest in 12 years and in line with a record winning streak first set 17 years ago, when the stock closed at a near four-month high on Monday. During the period, the stock has gained 142.7%. Read more about how investors are showing rare resilience during their winning streak.
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GameStop investors were up 15.4% for the week despite a midweek pullback.
Meanwhile, meme stock AMC Entertainment Holdings Inc. AMC fell 5.2% on Friday, or -7.55%, and fell 20.6% on a three-day losing streak. That wasn't enough to deter "Members," as the stock is still up 15.5% for the week and is up 63.4% on a three-week winning streak.
This week, Time magazine fueled interest in AMC, naming the company one of the 100 most influential companies in the world, and the company's "Meme Stock Championship" named it a "disruptor" of the list category.
"Will the meme craze expand further? Yes, it can scale as much as traders want!" wrote Ipek Ozkardeskaya, senior analyst at Swissquote. “And since these stocks don’t trade on fundamentals, the sky or the moon is the limit. It all depends on the overall risk appetite — but for now, pajama traders are dealing with rising inflation, Fed tightening, the pandemic and Risk of war worsening."
Part of AMC's investor appeal has been a surge in shares of gold and silver miner Hycroft Mining Holding Corp. HYMC, +8.00%, AMC invests nearly $30 million in meme stocks, believing it will "make big money."
Shares of Hycroft fell 4.1% on Friday and have fallen 14.7% over the past three days. But the stock is still up 72.3% for the week after more than doubling in the first two days of the week and closing at an eight-month high on Tuesday.
In a sign of investors' risk appetite, the CBOE Volatility Index VIX, -1.81%, also known as a fear gauge for the stock market because it tends to rise when markets fall, fell 0.2% on Friday, while the S&P The SPX 500, -0.27% slipped 0.2%. While the S&P 500 lost 0.5% over the same period, the VIX lost 1.4% for the week.