Earlier this year, certain stocks had recorded enormous gains on the back of the actions of retail investors from the Reddit community WallStreetBets.
After the trend dormant, it has returned with a vengeance this week and the usual suspects like AMC Entertainment (NYSE:AMC), GameStop (NYSE:GME) and Express have all seen their stocks soar by 37% and more so far this week. The rally is quite similar to what went down earlier on this year when retail investors targeted beaten down stocks and sent their prices soaring.
In addition to that, just like it was in January, there is no clear reason behind the strong rally in the stocks this week. Analysts believe that there are certain factors why these meme stocks have sprung back into life this week. One of those is the collapse in the cryptocurrency market that has prompted many retail investors to move from crypto to meme stocks once again for quick gains.
Biotech, Tech, and Crypto reporter
Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.