Another day, another round of earnings for Reddit shares GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC), Blackberry (NYSE:BB) and Nokia (NYSE:BB) This time there doesn’t seem to be any specific news from the company. With that in mind, what do you need to know about the shares of GME, BB, NOK and AMC now?
Source: Shutterstock / TY Lim
As a reminder, Reddit’s shares have been on the move since last week, following news that GameStop’s CFO, Jim Bell, would resign in late March. Investors are hopeful that activist investor and board member Ryan Cohen will be able to exercise some muscle with the new CFO. If Cohen can bring someone with experience in e-commerce or technology, GameStop can take a turnaround. Consider the continued enthusiasm of short-squeeze and the power of r / WallStreetBets and you will have a recipe for a rally.
This week, that energy continues. BlackBerry, Nokia and AMC won on Monday. GameStop was a real winner, with stocks closing at more than 18%.
At this point, there are not much more specific Reddit actions in motion. Redditors continue to support stocks, encouraging each other to buy more and keep holding. Some expect GME shares to touch up $ 500 or even up to $ 800.
However, there is one important thing that investors should note …
Reddit Stocks Meet Congress, Take Two
President Joe Biden chose Gary Gensler to head the United States Securities and Exchange Commission and Rohit Chopra to head the Department of Consumer Financial Protection. Tomorrow, Gensler and Chopra are due to appear on the Senate Committee on Banks, Housing and Urban Affairs. There, they will provide insight into a new era of market surveillance. They will also have the difficult task of answering questions from Congress on everything from income inequality to cryptocurrencies.
A topic on the agenda is GameStop and, more broadly, the increase in meme stocks. What will Gensler and Chopra have to say about the frenzy? And perhaps most importantly, what will they argue about the role of social media? With the SEC already paying close attention to the use of social media in manipulating stock prices, its interpretation of what happens on r / WallStreetBets is critical. In addition, as Bloomberg reported, Gensler and Chopra will talk about protections for unsophisticated retail investors and payment for order flow. Both themes have taken up a lot of space on Wall Street recently.
Keep an eye on Reddit’s actions. The rocket’s journey is not over yet.
As of the date of publication, Sarah Smith did not (directly or indirectly) hold any positions in the securities mentioned in this article.
Sarah Smith is a producer of web content at InvestorPlace.com.