FILE - An AMC movie cinema is shown before opening Friday, Jan. 29, 2021, in Garland, Texas. FILE - A GameStop store in New York is shown on Jan. 28, 2021. What’s going on with GameStop’s stock doesn’t make sense to a lot of people. The struggling video game retailer’s stock has been making stupefying moves this month, wild enough to raise concerns from Wall Street to the White House. FILE - An AMC movie cinema is shown before opening Friday, Jan. 29, 2021, in Garland, Texas.
But some things remain firmly the same. Chief among them is the risk of losing everything that accompanies the potential to make fast money playing such volatile stocks. Here’s a look at what’s going on:GameStop, the granddaddy of meme stocks, has soared suddenly and sharply. It was nearly 37% higher Tuesday afternoon after surging 74% the day before. Other meme stocks from the pandemic era are moving just as radically. AMC Entertainment, the movie theater operator, jumped nearly 31% Tuesday.
Big hedge funds and other professional investing firms are better equipped to handle the situation this time around, he said, and they could be riding the wave higher with small-time investors before trying to exit the trades before them, which could leave those smaller-pocketed investors holding the risk.
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