Crash despite recession fears as retailers buy up stakes in struggling companies like GameStop, AMC and Bed Bath & Beyond The memetic strain is back.
According to Ape Wisdom, who tracks trending stocks on the social media site,his three companies are again the most talked about in the WallStreetBets Reddit crowd.
AMC Entertainment, the beleaguered movie theater company, has seen him down 10% year-to-date, but he's up 54% in the past five days.
Bed Bath & Struggling retailer Beyond is down 25% year-to-date but is up 97% over the past five days.
GameStop, the once-dead video game company that sparked a meme craze last year, is up more than 13% to date after surging 21% over the past five days. .
Basically, nothing has changed to boost these companies, and all three of his companies are expected to be in the red this year.
That's a big change from just a few months ago when big banks like Morgan Stanley and Goldman Sachs reportedthe rise of retail traders surpassed. Reserves to raise interest rates and tighten markets.
According to Morgan Stanley, what was hit hardest by the stock market sell-off in the spring was that, on average, stocks lost all the gains they made when the market peaked. First on the market in 2020, we created a basket of our favorite strains.
while retail traders are S&P Although the S&P 500 rose early in the year from May 2020 above 500 to May 2021, its performance plummeted and remained flat until March 2022 this year.
A similar study of Goldman Sachs' basket of retail stocks showed the same results. Retail inventories nearly doubled from January 2020 to November 2021, but are down 32% this year. Likewise, the purchasing power of retailers has weakened. Day traders bought just $14 billion in stocks in April, the second slowest buy in nearly two years.
