Share prices soar for troubled retailers including Bed Bath & Beyond and AMC – but this time dueling hedge funds are playing a part
An AMC movie cinema in Garland, Texas. GameStop and other meme stocks, such as AMC, are soaring again.An AMC movie cinema in Garland, Texas. GameStop and other meme stocks, such as AMC, are soaring again.Just like double denim, it seems some trends never really die. After flaming out in spectacular fashion last year, the meme stock frenzy of 2021 has made a return.and the cinema chain AMC Entertainment have once again soared.
Many small investors then felt like they had hedge funds and big institutional investors on the run. Indeed, the frenzy came close to bankrupting a number of hedge funds. It didn’t last. By February the meme stock craze was unraveling and older heads were smugly smiling again. None of the three are considered winning bets in any conventional sense, and the rise in Bed Bath & Beyond came days before its stock was downgraded by the ratings agency Baird. “This frenzied move has been driven by non-fundamentally focused market participants,” Baird analyst Justin Kleber wrote in a note to clients.
“Non-fundamentally focused market participants” is an apt way to describe traders at the height of the pandemic meme-stock frenzy. That time around the Reddit board was filled with memes about traders with “diamond hands” – unafraid to take bets against conventional wisdom.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cheng Lei's children share heartfelt drawings two years after arrestAustralian journalist Cheng Lei's children have shared two heartbreaking drawings showing how much they miss their mother on the eve of the two-year anniversary of her arrest in Beijing.
Read more »
Barings snaps up $6b asset manager Altis as Asia-Pac launching padThe acquisition of Altis, via a share sale agreement, will give Barings exposure to a large portfolio of industrial, office and residential projects.
Read more »
Insurance Australia Group cuts dividend despite $347 million profitInsurance Australia Group has cut its dividend despite turning a profit in the recent financial year, says Sky News Business Reporter Edward Boyd. The group, which owns NRMA and CGU, posted a profit of $347 million, a sharp increase from the $427 million loss reported last year. Natural disasters, however, cost the insurer $1.1 billion during the year, causing the dividend to drop to just $0.05 from $0.13 per share.
Read more »
John Howard ‘out of step’ with mainstream Republicans over TrumpRecastled CEO Kosha Gada says former prime minister John Howard is “out of step” with mainstream Republicans over his opinion of former US president Donald Trump. Ms Gada said in certain circles, Mr Howard “is revered,” and high-profile Republican families such as the Bushes, the McCains and the Cheneys value his opinion “and share it”. “If you travel in other circles such as the tens of millions of people that supported Trump in ’16 and ’20 and still do today, including Trump personally, I don’t think they’re losing a lot of sleep over the viewpoint of a former Australian prime minister,” she told Sky News host Chris Smith. “With those people, (Trump)’s support is only rising, and they would actually disagree with the prime minister and say they viewed his presidency as a win on paper. “I think he’s out of step with where the mainstream Republican voter in America sits.”
Read more »
How a quant may have unleashed the revenge of the meme stocks“Let ’em come,” Cliff Asness told meme traders after revealing he was shorting their favourite stock, AMC. And come they did.
Read more »