Theater chain leads mild rebound in meme stocks amid broader market optimism
Shares of AMC Entertainment (AMC) gained 5% on Monday, trading above $3 after the theater chain reported second-quarter results showing revenue growth and a narrower loss. While the stock pulled back from its morning highs and remains below its end-of-2024 level of just under $4, the upbeat earnings report helped rekindle investor interest ahead of the company’s post-market conference call.
Other meme stocks saw quieter moves. GameStop (GME) rose more than 1%, while apparel retailer American Eagle (AEO) — recently in the spotlight thanks to actress Sydney Sweeney and former President Donald Trump — was little changed. Kohl’s (KSS), another retail name to join the meme-stock ranks, jumped nearly 7%.
Although Monday’s activity lacked the frenzy seen late last month, when multiple meme stocks surged in unison, it suggests that retail investor enthusiasm hasn’t fully disappeared. Vanda Research recently noted that interest in such names had “seemingly fizzled out,” but pockets of speculative energy remain. As Ritholtz Wealth Management’s Ben Carlson quipped last week, “Mr. Market sometimes acts as if he’s had 13 Red Bulls before the market opens.”
The modest meme-stock revival comes against a backdrop of strong equity markets. Stocks ended last week at highs and remain elevated, buoyed by growing expectations of a Federal Reserve interest-rate cut. Bitcoin is also hovering near record levels, adding to the risk-on sentiment.
Oppenheimer analysts cautioned that while “quality” remains the priority for most stock pickers, the “wild west” of meme and crypto plays continues to attract traders seeking high-volatility opportunities. For AMC and its peers, the challenge will be sustaining momentum beyond quick bursts of retail-driven excitement — something recent earnings may help, but market mood will ultimately decide.
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