This morning, meme-stock favorite AMC Entertainment (NYSE:AMC) saw a wild spike higher around 10:30 a.m. Eastern. This spike sent AMC stock surging more than 30% in earlier trading, which provided investors with a reprieve, given that AMC stock briefly dipped below $10 per share to mint a fresh 52-week low this morning as well.
AMC wasn’t alone. Other high-profile meme stocks such as GameStop (NYSE:GME) also surged around the same time. These stocks have moved in sync for the better part of two years, so this action may not necessarily be surprising. However, questions of whether meme stocks are back “in” again are now resurfacing.
It’s been a while since we’ve seen a speculative mania take hold. Indeed, despite a number of surges since the rally we saw in early 2021, AMC, GME and their meme stock compatriots have been generally trending downward. It’s a risk-off market and looks to remain so, at least until the Federal Reserve reverses course.
That said, let’s dive into today’s price action and see what we can glean from these moves.
AMC Stock Surges, Despite Another Down Day In Markets
This price action in the broader markets is ugly. Accordingly, for investors attempting to look on the bright side, finding stocks that are in the green is a task worth considering.
At the time of writing, AMC stock is still green. That said, AMC is now only 1% higher as of 2:00 p.m. Eastern, driven lower by a broad-based plunge in the markets this afternoon.
Like other heavily shorted stocks, speculators and traders have looked for momentum signals to load up on AMC stock for some time. Today’s rally provided an indication that perhaps some dip-buyers may still be out there. Accordingly, AMC stock will remain in focus for some time as this volatility continues.
Whether today’s rally is just the start or simply a blip on the longer-term radar is still unclear. However, I’ll be keeping an eye on how this stock moves from here. It’s going to be a fun ride.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
