Another day, another round of gains for Reddit stocks GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC), BlackBerry (NYSE:BB) and Nokia (NYSE:BB). This time, there does not appear to be any company-specific news. With that in mind, what do you need to know about GME, BB, NOK and AMC stock right now?
As a reminder, Reddit stocks have been on the move since last week, following news that GameStop CFO Jim Bell would resign at the end of March. Investors are hopeful that activist investor and board member Ryan Cohen can flex some muscles with the new CFO. If Cohen can bring in someone with experience in e-commerce or tech, GameStop could turnaround. Factor in ongoing short-squeeze enthusiasm and the power of r/WallStreetBets, and you have a recipe for a rally.
This week, that energy continues on. BlackBerry, Nokia and AMC each gained on Monday. GameStop was a real winner, with shares closing higher by more than 18%.
At this point, there is not much else specific moving Reddit stocks. Redditors keep supporting the stocks, encouraging each other to purchase more and to keep holding. Some are hoping for GME stock to retouch $500, or even hit $800.
However, there is one key thing for investors to watch…
Reddit Stocks Meet Congress, Take Two
President Joe Biden picked Gary Gensler to head up the U.S. Securities and Exchange Commission, and Rohit Chopra to lead up the Consumer Financial Protection Bureau. Tomorrow, Gensler and Chopra must go before the Senate Committee on Banking, Housing and Urban Affairs. There, they will give insight into a new era of market oversight. They will also have a tough task of answering Congressional questions on everything from income inequality to cryptocurrencies.
One topic on the agenda is GameStop, and more broadly, the rise of meme stocks. What will Gensler and Chopra have to say about the frenzy? And perhaps most importantly, what will they argue about the role of social media? With the SEC already paying close attention to the use of social media in share price manipulation, their interpretation of what happens on r/WallStreetBets is key. Plus, as Bloomberg reported, Gensler and Chopra will talk about protections for unsophisticated retail investors and payment for order flow. Both of those themes have taken up quite a bit of real estate on Wall Street lately.
Keep a close eye on Reddit stocks. The rocket ride has not ended yet.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.