In the last few weeks, shares of AMC Entertainment, Bed Bath & Beyond, and other meme stocks have increased in value.
AMC Entertainment, Bed Bath & Beyond, and GameStop have all increased in value since the bottom of the S&P 500. The S&P 500 has gone up just 15%. On Monday, shares of all three companies saw gains of at least 10% and as much as 40% in what appears to be a risk on move driven by retail investors.
Retail investors are getting more comfortable with taking on more risk in their portfolios after seeing their favorite stock holdings decline in value. Tech stocks popular with retail investors peaked in February 2021, when the S&P 500 fell as much as 23%, and saw losses of as much as 80%.
Despite worries of an economic recession, retail investors are coming back to the market.
GameStop, AMC Entertainment, and Bed Bath & Beyond were among the most talked about stocks on Monday.
AMC Entertainment was the most traded stock on the platform on Monday with more than 6,000 buy orders. AMC's surge has been aided by a number of successful box office hits this summer and the company's recent decision to issue an "APE" preferred stock dividend to its investors.
Bed Bath & Beyond was one of the most traded stocks on Monday.
The rally in meme stocks is not certain to last. The company said that it expects revenue to fall by more than $1 billion because of weakness in the gaming market. It could be bad news for the company.
Bed Bath & Beyond saw a management shakeup after it posted a bad miss in its quarterly earnings results, and uncertainty remains for AMC as the movie theater box office has yet to recover from the COVID-19 Pandemic.
Retail investors are willing to take a second bet on the meme stocks despite the risks.
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