Meme Stock Momentum

Gamestop and AMC Start the Month off Green.

The past few weeks have been a lifesaver for the equity markets. Stocks along with cryptocurrency prices have shown resilience bouncing back from yearly lows. On Friday, low-cap stocks we're seeing volatility that we haven't seen in a long time.

Gamestop trades in the mid 40's after a recent stock split 3 weeks ago. Since the beginning of the month, Gamestop is up 30-40%.

AMC has seen similar trading to Gamestop. Last week, AMC reported better than expected earnings along with announcing a stock split in the form of a dividend. The stock reacted negatively at first, but saw a quick turn around and a pop into the high 20's.

Lastly, Bed Bath and Beyond has arises from the depths jumping over 100% to start the month. This was another "Meme stock" during the crazy shorts squeeze of 2021.

Could these stocks be setting up for another short squeeze? These smaller cap stocks tend to follow one another, even though they vary in industries. It may only take one stock to bleed short sellers enough to have a ripple effect on the rest of the market. Will these stocks be able to hold their gains?