AMC Shares Swing Wildly as Investors Try Exiting 2021 Favorites
(Bloomberg) -- AMC Entertainment Holdings Inc., one of the best-known meme stocks, slumped as much as 11% before recouping all those losses as jittery retail investors turned active on their favorite stocks ahead of the Federal Reserve’s closely watched monetary policy decision.
AMC’s closed 5.4% higher after falling as much as 10% at the open. It declined 15% on Monday together with other retail favorites such as Bed Bath & Beyond Inc. and GameStop Corp. GameStop and AMC were some of the earliest names chased by amateur retail earlier this year, giving them multifold gains in a short span of time and kicking off the famous meme-stock rally. Gamestop rose 7.9% on Tuesday, while Bed Bath and Beyond slid 1%.
Risky assets and high-flying tech companies have been under pressure recently as the Federal Reserve is seen rolling back some of its pandemic-era stimulus.
Tesla Inc., another retail favorite, closed 0.8% lower after falling as much as 3.7%, and taking its overall losses from November 4 peak to about $280 billion.
The trend has bigger implications as these investors make up 20% to 30% of trading volume in the U.S., according to JPMorgan. That’s a marked change from 2020 when these so-called retail traders were seen as small-time players dabbling in stock markets.
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