Meme stocks have a bid on Thursday, with GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC) and others climbing higher in the session. For their parts, GameStop and AMC stock are each up about 15% at the time of writing.
This will undoubtedly have investors wondering whether we can see another upside squeeze in these names.
While we’re currently in a bear market — both in regards to GME and AMC stock, as well as the overall market — that doesn’t mean there can’t be upside rallies. These are generally called dead-cat bounces or bear-market rallies until the trend changes.
It’s a good day in the stock market today, but that doesn’t have much correlation with the move we’re seeing in meme stocks. Instead, it’s company-specific news driving the action.
GameStop is rallying on news of its 4-for-1 stock split. Bed Bath & Beyond (NASDAQ:BBBY) is another meme stock, which is currently up 21% on news of insider buying. Then there’s AMC stock, which is rallying on optimism surrounding comments from its CEO.
Will AMC Stock Punish the Short Sellers?
CEO Adam Aron tweeted, “I keep getting asked ‘Wen pounce?’” This is likely in reference to when will the company unveil a catalyst or catalysts to punish the shorts.
Aron said he always keeps his word, adding in the tweet, “I’ve said publicly a pounce would not happen before Second Quarter 2022 earnings are announced. … Press release issued today that Q2 earnings to be announced on Thurs, August 4. Read between those lines.”
That is true, as the company officially scheduled its earnings results.
What exactly could Aron have in store? No one’s sure. But if it times up with other meme-stock motives and a larger bear-market rally in the overall market, we could be looking at a potentially sizable move in the stock price.
Keep an eye on this name — and GME and BBBY stocks too.
On the date of publication, Bret Kenwell 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.
