Live Chat

GameStop shares rally as meme stocks appear to be back on the menu

Meme Stocks Back on the Menu, GameStop Shares Rally

GameStop shares soared over 100% and was halted several times due to volatility as Keith Gill, better known as “Roaring Kitty”, resurfaced on Twitter — all he posted was a picture of a guy leaning forward in a chair. But this first tweet in three years was all it took for the meme stock community to jump back in, in feet first.

GME was already starting to rally before Monday, but yesterday’s trading was wild and reminiscent of the original meme stock craze — remember WallStreetBets and Melvin Capital? In the end, GameStop shares finished up 74% for the session.

Short interest in GME stood at 24% before the fireworks, so we can assume a fair chunk of the move is short-covering action chasing the initial move up, plus some hedgies will have had calls on their shorts.

Trend following and momentum strategies may have helped. And it looks like retail investors are becoming more bullish again and willing to take on more risk. There is no fundamental reason for the move as such — GameStop’s last earnings report was abysmal. As of May 14, GameStop shares are up 73% year-to-date — all due to the recent rally.

Worth taking a scan around for some other meme stocks. AMC and some other meme names caught some tailwinds from the GME fun to rally. AMC shares jumped 78%! Meme mania also appeared to be good for Robinhood stock – shares rose 4%.

YOLO and FOMO? I think it’s way too easy to read too much into this move but it’s not stopping just yet – GameStop shares are up 43% in premarket hours on Tuesday.

It’s already producing a lot of memes. Roaring Kitty has posted a bunch more clips from films.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Naspers
Bristol Myers
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

Challenging Split for Anglo?

Anglo American doesn’t need BHP to break up – it's rejected an improved BHP takeover bid and announced it will spin off De Beers, Anglo Platinum and its coking coal business. And Anglo says it’s exploring options for its nickel business.

That leaves a core of copper and iron core plus a rather reduced Woodsmith. Spending on this will fall from $1bn a year to just $200mn next year. A lot of the same challenges remain. And we probably need a bit more detail on an additional $800mn in cost cuts. Anglo may find breaking up is hard to do, but it didn’t need BHP to do it.

Here is UK investment bank Liberum for additional context:

“A spin-out of Anglo Platinum will take at least 12 months and have the same regulatory and tax challenges as per BHP's plan. De Beers needs capital for marketing and expansion and looking to divest at the bottom of the cycle with significant rough diamond price uncertainty.

Slowing down Woodsmith has the potential to be significantly NPV negative, and while capex might be zero, running costs will not and cashflows will be pushed further out.

Anglo American can rip costs out of this business and the units will be more closely aligned in terms of processing and geography (Anglo American is on track to achieve the previously announced run rate of US$1 billion annual savings in operating expenditure in 2024. Additionally, a further $0.8 billion of cost out from the end of 2025 is targeted.).

“We do not think this will ultimately result in a multiple re-rating, it will still be a diversified miner and trade on a similar multiple it does today.”

UK Shares Flat Despite Recent Gains

Elsewhere, stocks were flat in London on Monday but remain very close to the record high. It’s a pretty timid flat open for Europe on Monday, though Germany’s DAX index diverged a bit as it fell a quarter of a per cent early doors.

It was flat for Wall Street on Monday as the Dow notched its first slight down day in nine. Everyone is hanging on the CPI inflation print tomorrow. Today we get a feel for things with the US PPI and a speech by Fed chair Jay Powell. PPI is seen around +2.2% YoY and core at +2.4%.

US Inflation

Elevated inflation expectations are a concern for markets. A New York Fed survey showed median one-year inflation expectations in the US rose to 3.3% from 3.0%. Just to underline the difficulty in going ‘the last mile’ once the inflation genie is out of the toothpaste tube.

A note by BofA read:

“...squeeze risks for rate-sensitive laggards on a CPI miss outweigh downside risks on a CPI beat... With further hikes ruled out, we think equities may be able to tolerate higher inflation. An in-line print should also be net positive, removing the inflation overhang at least in the near term.”

UK Unemployment Rises, Wage Growth Remains Solid

UK Unemployment Rises, Wage Growth Remains Solid

Meanwhile, following a rally above 1.25 on Monday against a broadly softer dollar, the GBP to USD pair was trading a bit weaker this morning after new data showed UK unemployment rose to 4.3%, though wage growth remains solid at 6% excluding bonuses.

All else equal this should be great for the consumer with real wages continuing to run at levels we have not seen in years. We should caution though that the UK data right now cannot be relied upon.

The wage growth data may be flattered by the minimum wage increase in April and the rise in unemployment points to a general cooling in the labour market that ought to be supportive of rate cuts. However, I point to one shocking statistic to show that wage growth and inflation can remain very stubborn without an increase in output: The UK economic inactivity rate for people aged 16 to 64 years was estimated at 22.1% — almost one in four adults. An eyebrow-raising figure.

GBPUSD – bullish MACD still in charge. A move clear of the 200-day line 1.2540 needs to be held.



When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Friday, 11 October 2024

Indices

Gold performance 2024 and how much will gold price increase in Q4?

Stocks retreat from recent highs as US inflation comes in stickier than expected

Friday, 11 October 2024

Indices

Stocks retreat from recent highs as US inflation comes in stickier than expected

ECB set to cut rates for the third time this year

Thursday, 10 October 2024

Indices

Week ahead: ECB set to cut as Wall Street earnings season gathers pace

Thursday, 10 October 2024

Indices

Dollar fluctuates after CPI Inflation and Jobless Claims came in stronger

Live Chat