I could have started this article like this:”On Wednesday, the drum major for the EVs — Tesla (TSLA) — kicked off the earnings spectacle with a flourish, earning $0.006 a share, more than double the consensus estimate.” But I am not going to write about TSLA nor AAPL, because why would I? We’ll soon see how investors respond to the latest batch of tech results but here is the winner for the day, the day that is yet to start.
Glory days of meme stocks are upon us as AMC stock surges through the roof pre-market on Wednesday, more than 300%!!
The people decide which companies succeed now. Just how to should be .— V.S.K (@VassK) January 27, 2021
As always, sleepy analysts weren’t expecting too many surprises with AMC stock price. However, there was a chatter on Wall Street Bets ahead of this week rally that we could see another short squeeze.But even though everything was pointing to a near term rally, analysts were still standing strongly behind their numbers. Analysts covering shares of AMC Entertainment Holdings Inc, gave it an average price $2.89. With one analysts even giving it a $1.55! The sad part is, someone is paying these guys to throw these random numbers into our faces.
While there’s no denying some money has moved from GameStop’s rally in the past few days, maybe now is a good time to step away from the minute-to-minute market gyrations and put some perspective on this recent gains. Sure, many of these technology names (BB, GME, NOK)are pricey — no one’s arguing that. But the fundamentals of these stocks haven’t deteriorated. In fact, they generally look pretty good.
To put it simply, first-quarter technology earnings are going to blow away just about every other sector in the market. And I am sure AMC will survive through 2021. If their management is smart they should do an offering now.
Who would have thought that old estranged couple, the GameStop and the AMC, would ever waltz to the top of the page one together again?