SPWR - Meme Stock Rally: Likely To Continue Next Week
2024-05-17 10:39:32 ET
Summary
- Mass actions by retail investors have resurrected interest and possibly shored up midterm valuations in a growing batch of consumer stocks.
- While media coverage paints the meme stock resurgence as the result of one individual's recent actions, data shows that recent price actions find declining strident opposition. However, traded volumes tend to be mercurial.
- While GameStop and AMC are central to this rally, underlying factors behind actions are likely widespread dissatisfaction over market breadth and overvaluation allowances afforded to a select few stocks.
This current week has had significant mentions of a "meme stock frenzy" as retail investors trooped back into the markets en masse with a strong interest in a growing set of stocks that have largely been forgotten as the "AI surge" and the "Magnificent Seven" drew away market breadth. So strong has been retail investor participation that trading in certain stocks was briefly halted a number of times on zero-commission brokerages such as Robinhood to account for the heavy demand....
Meme Stock Rally: Likely To Continue Next Week