GameStop, AMC Undercut Key Levels As Risks Compound; Are Meme Stocks A Buy Now?

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GameStop, AMC Undercut Key Levels As Risks Compound; Are Meme Stocks A Buy Now?

Blockhead01-17

Meme stocks like AMC Entertainment (AMC) and GameStop (GME) get their price spikes from exceptional buying interest. But those sudden and sporadic gains are as unpredictable as they are risky.Adding ...

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jombie
·01-17
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But those sudden and sporadic gains are as unpredictable as they are risky.Adding ...</p>\n\n<a href=\"https://www.investors.com/research/meme-stocks-buy-now-january-2025/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>GameStop, AMC Undercut Key Levels As Risks Compound; Are Meme Stocks A Buy Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGameStop, AMC Undercut Key Levels As Risks Compound; Are Meme Stocks A Buy Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-17 02:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/research/meme-stocks-buy-now-january-2025/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Meme stocks like AMC Entertainment (AMC) and GameStop (GME) get their price spikes from exceptional buying interest. But those sudden and sporadic gains are as unpredictable as they are risky.Adding ...</p>\n\n<a href=\"https://www.investors.com/research/meme-stocks-buy-now-january-2025/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4127","symbol_name":"投资银行业与经纪业","start_time":0,"source_url":"https://www.investors.com/research/meme-stocks-buy-now-january-2025/","article_id":"2504949607","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2504949607","pubTimestamp":1737053452,"columns":[],"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"Meme stocks GameStop and AMC are below key levels of support.","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4127":"投资银行业与经纪业","BK4577":"网络游戏","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","BK4108":"电影和娱乐","GME":"游戏驿站","AMC":"AMC院线","BK4588":"碎股","BK4076":"电脑与电子产品零售","BK7063":"纸材料包装"},"translate_title":"随着风险加剧，游戏驿站、AMC下调关键水平；迷因股票现在值得买入吗？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMC":1,"GME":1},"content_text":"Meme stocks like AMC Entertainment (AMC) and GameStop (GME) get their price spikes from exceptional buying interest. But those sudden and sporadic gains are as unpredictable as they are risky.Adding to that risk, GameStop undercut the 50 day moving average on Tuesday as shares dived 10%. Shares also lost the 21-day moving average for the first time since third-quarter results were announced on Dec. 10. Meanwhile, shares of AMC have also undercut both moving averages and remain in a downtrend.GameStop and AMC are known for volatile movements associated with meme stocks. But are meme stocks a buy now?↑ X NOW PLAYING What Are Meme Stocks And Should Investors Buy Them?AMC Stock At Risk From High Short InterestShort interest is running high for AMC. Based on a simple calculation using IBD MarketSurge data, short interest for AMC is 13%.A higher short interest can result in a spike in the stock price, should sellers try to exit their short position by buying the stock.Third-quarter results announced Nov. 6 lifted shares but the stock quickly gave back the gains. That showed that buying stocks just because they are rallying is a poor strategy. It is better to bring a time-tested method for stock picking and search for buy points in proper bases.Sales of $1.3 billion declined from $1.4 billion in the year-ago period, while a loss of 4 cents per share showed an improvement from a loss of 9 cents a share a year ago.In July, the company refinanced and extended $1.6 billion in debt maturing in 2026 to 2029 and beyond.The meme stock has IBD Ratings that are well below ideal levels. The Composite Rating is just 14.Panning out for a longer view, IBD MarketSurge's monthly chart highlights the wild swings that are typical of meme stocks. From a split-adjusted closing price of 11.49 on Dec. 31, 2020, AMC shares hit an all-time high 393.65 on June 2, 2021. That's a gain of 3,326%. But the stock has crashed since then.'Roaring Kitty' Ignites Meme FrenzyGameStop jumped after meme investor Keith Gill, aka \"Roaring Kitty,\" posted the image of a gift on Twitter/X on Dec. 25. Many investors took Gill's post as a cue to look at GameStop stock again. GameStop has a short interest of 7.9%.Earlier, on Dec. 5, the meme investor posted on Twitter/X an image of a mocked-up Time Magazine cover with a blank computer screen and keyboard.AMC soared after the post, but fell 9% the next day, after the movie theater company announced on Dec. 6 an agreement to sell 50 million shares, according to a filing with the Securities and Exchange Commission.GameStop reported its third quarter results on Dec. 10, a key event for meme traders. Sales of $860 million on a loss of 6 cents per share missed analysts' estimates of $887.7 million in revenue and a loss of 3 cents per share. Still, shares jumped more than 7% the next day.The company also stated that it plans a \"comprehensive store portfolio optimization review which involves identifying stores for closure based on many factors including an evaluation of current market conditions and individual store performance.\" The review may result in more store closures than in the past few years as GameStop seeks to attain what it calls \"sustainable profitability.\"During the quarter, the company also entered a new business and started providing autograph authentication for trading cards at some of its stores.GameStop's Risky TradingGameStop's volatility is cause for caution. For one thing, volatile movement provides little opportunity for well-formed bases.Further, the stock is down over 70% from its all-time high of 120.75, reached in January 2021.Going back further, the video game retailer grew an investor fan base in late 2020 at the height of the meme-stock frenzy. By January 2021, the meme stock shot up 1,625% to 81.25, then crashed to 9.63 the very next month.Investor's Business Daily recommends stock picks based on strong fundamental performance and chart action while also paying attention to the market and managing risk.GameStop has an IBD Composite Rating of 67, reflecting weak chart action and fundamentals.Meme Stocks Rally In MayMeme stocks rallied in May after Gill posted on X for the first time since the pandemic in May. AMC soared as much as 308% May 13-14 and GameStop gained 271% to the peak of the same two-day period. But today those gains have vanished almost entirely.AMC quickly gave up its gains after the movie theater company on May 15 announced an equity swap to exchange 23.3 million newly issued shares for bonds worth $163.9 million maturing in 2026.Top Financial Soars, Comes Back DownTop Financial (TOP) was a perfect example of meme stock volatility. The stock skyrocketed in one day from 48.60 to 256.44 on April 28, 2023 — a 428% gain. It quickly crashed and traded for under 10 by May 2023.Top stock came public on the Nasdaq in June 2022. The initial offering priced at $5 per share for 5 million shares. Shares popped on the first day of trading, reaching a high of 27.50.The stock rallied more than 50% in early May last year in meme-like action, then reversed gears and fell more than 70% in a single day. Shares have trended even lower since.The stock is trading around 1.60 a share now. It surged 65% on Feb. 9 and was back to its usual trading range the next day. There was no news on the company.The Hong Kong-based fintech generates revenue through commissions on trades of equities, futures and options. Its Composite Rating stands at 16.Meme Stocks A Buy Now?A meme stock is a speculative play, known for high levels of unpredictability because it can rally or crash in any market, and at any time. Its meteoric rises and heart-stopping crashes typically depend on social media hype and online interest. But short interest can also lead to erratic spikes that have no underlying cause.Hyper stock valuations for these companies depend, for the most part, on young fans and an anonymous following that can appear or disappear overnight. Retail investors dominate the interest in these stocks.These stocks do not follow traditional investment wisdom, which says you should buy stocks based on earnings growth and performance. As such, they are extremely speculative.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":393585110880792,"gmtCreate":1737129374778,"gmtModify":1737131939189,"author":{"id":"3577755006431767","authorId":"3577755006431767","name":"jombie","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/f84859c65fc2d7681e28f6b8e9b0535a","crmLevel":6,"crmLevelSwitch":0,"authorIdStr":"3577755006431767","idStr":"3577755006431767"},"htmlText":"Nonsense&nbsp;","listText":"Nonsense&nbsp;","text":"Nonsense","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/393585110880792","repostId":2504949607,"repostType":2,"repost":{"id":"2504949607","kind":"highlight","pubTimestamp":1737053452,"share":"https://ttm.financial/m/news/2504949607?lang=&edition=fundamental","pubTime":"2025-01-17 02:50","market":"us","language":"en","title":"GameStop, AMC Undercut Key Levels As Risks Compound; Are Meme Stocks A Buy Now?","url":"https://stock-news.laohu8.com/highlight/detail?id=2504949607","media":"Blockhead","summary":"Meme stocks GameStop and AMC are below key levels of support.","content":"<p>Meme stocks like <strong>AMC Entertainment</strong> (AMC) and <strong>GameStop</strong> (GME) get their price spikes from exceptional buying interest. But those sudden and sporadic gains are as unpredictable as they are risky.</p><p>Adding to that risk, GameStop undercut the 50 day moving average on Tuesday as shares dived 10%. Shares also lost the 21-day moving average for the first time since third-quarter results were announced on Dec. 10. Meanwhile, shares of AMC have also undercut both moving averages and remain in a downtrend.</p><p>GameStop and AMC are known for volatile movements associated with meme stocks. But are meme stocks a buy now?</p><p>↑ X NOW PLAYING What Are Meme Stocks And Should Investors Buy Them?</p><h2 id=\"id_18979289\">AMC Stock At Risk From High Short Interest</h2><p>Short interest is running high for AMC. Based on a simple calculation using IBD MarketSurge data, short interest for AMC is 13%.</p><p>A higher short interest can result in a spike in the stock price, should sellers try to exit their short position by buying the stock.</p><p>Third-quarter results announced Nov. 6 lifted shares but the stock quickly gave back the gains. That showed that buying stocks just because they are rallying is a poor strategy. It is better to bring a time-tested method for stock picking and search for buy points in proper bases.</p><p>Sales of $1.3 billion declined from $1.4 billion in the year-ago period, while a loss of 4 cents per share showed an improvement from a loss of 9 cents a share a year ago.</p><p>In July, the company refinanced and extended $1.6 billion in debt maturing in 2026 to 2029 and beyond.</p><p>The meme stock has IBD Ratings that are well below ideal levels. The Composite Rating is just 14.</p><p>Panning out for a longer view, IBD MarketSurge's monthly chart highlights the wild swings that are typical of meme stocks. From a split-adjusted closing price of 11.49 on Dec. 31, 2020, AMC shares hit an all-time high 393.65 on June 2, 2021. That's a gain of 3,326%. But the stock has crashed since then.</p><h2 id=\"id_3323522200\">'Roaring Kitty' Ignites Meme Frenzy</h2><p>GameStop jumped after meme investor Keith Gill, aka \"Roaring Kitty,\" posted the image of a gift on Twitter/X on Dec. 25. Many investors took Gill's post as a cue to look at GameStop stock again. GameStop has a short interest of 7.9%.</p><p>Earlier, on Dec. 5, the meme investor posted on Twitter/X an image of a mocked-up Time Magazine cover with a blank computer screen and keyboard.</p><p>AMC soared after the post, but fell 9% the next day, after the movie theater company announced on Dec. 6 an agreement to sell 50 million shares, according to a filing with the Securities and Exchange Commission.</p><p>GameStop reported its third quarter results on Dec. 10, a key event for meme traders. Sales of $860 million on a loss of 6 cents per share missed analysts' estimates of $887.7 million in revenue and a loss of 3 cents per share. Still, shares jumped more than 7% the next day.</p><p>The company also stated that it plans a \"comprehensive store portfolio optimization review which involves identifying stores for closure based on many factors including an evaluation of current market conditions and individual store performance.\" The review may result in more store closures than in the past few years as GameStop seeks to attain what it calls \"sustainable profitability.\"</p><p>During the quarter, the company also entered a new business and started providing autograph authentication for trading cards at some of its stores.</p><h2 id=\"id_4189912188\">GameStop's Risky Trading</h2><p>GameStop's volatility is cause for caution. For one thing, volatile movement provides little opportunity for well-formed bases.</p><p>Further, the stock is down over 70% from its all-time high of 120.75, reached in January 2021.</p><p>Going back further, the video game retailer grew an investor fan base in late 2020 at the height of the meme-stock frenzy. By January 2021, the meme stock shot up 1,625% to 81.25, then crashed to 9.63 the very next month.</p><p>Investor's Business Daily recommends stock picks based on strong fundamental performance and chart action while also paying attention to the market and managing risk.</p><p>GameStop has an IBD Composite Rating of 67, reflecting weak chart action and fundamentals.</p><h2 id=\"id_2755234102\">Meme Stocks Rally In May</h2><p>Meme stocks rallied in May after Gill posted on X for the first time since the pandemic in May. AMC soared as much as 308% May 13-14 and GameStop gained 271% to the peak of the same two-day period. But today those gains have vanished almost entirely.</p><p>AMC quickly gave up its gains after the movie theater company on May 15 announced an equity swap to exchange 23.3 million newly issued shares for bonds worth $163.9 million maturing in 2026.</p><h2 id=\"id_2079993420\">Top Financial Soars, Comes Back Down</h2><p><strong>Top Financial</strong> (TOP) was a perfect example of meme stock volatility. The stock skyrocketed in one day from 48.60 to 256.44 on April 28, 2023 — a 428% gain. It quickly crashed and traded for under 10 by May 2023.</p><p>Top stock came public on the Nasdaq in June 2022. The initial offering priced at $5 per share for 5 million shares. Shares popped on the first day of trading, reaching a high of 27.50.</p><p>The stock rallied more than 50% in early May last year in meme-like action, then reversed gears and fell more than 70% in a single day. Shares have trended even lower since.</p><p>The stock is trading around 1.60 a share now. It surged 65% on Feb. 9 and was back to its usual trading range the next day. There was no news on the company.</p><p>The Hong Kong-based fintech generates revenue through commissions on trades of equities, futures and options. Its Composite Rating stands at 16.</p><h2 id=\"id_191291305\">Meme Stocks A Buy Now?</h2><p>A meme stock is a speculative play, known for high levels of unpredictability because it can rally or crash in any market, and at any time. Its meteoric rises and heart-stopping crashes typically depend on social media hype and online interest. But short interest can also lead to erratic spikes that have no underlying cause.</p><p>Hyper stock valuations for these companies depend, for the most part, on young fans and an anonymous following that can appear or disappear overnight. Retail investors dominate the interest in these stocks.</p><p>These stocks do not follow traditional investment wisdom, which says you should buy stocks based on earnings growth and performance. As such, they are extremely speculative.</p>","source":"investor_business_daily_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>GameStop, AMC Undercut Key Levels As Risks Compound; Are Meme Stocks A Buy Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGameStop, AMC Undercut Key Levels As Risks Compound; Are Meme Stocks A Buy Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-17 02:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/research/meme-stocks-buy-now-january-2025/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Meme stocks like AMC Entertainment (AMC) and GameStop (GME) get their price spikes from exceptional buying interest. But those sudden and sporadic gains are as unpredictable as they are risky.Adding ...</p>\n\n<a href=\"https://www.investors.com/research/meme-stocks-buy-now-january-2025/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4127":"投资银行业与经纪业","BK4577":"网络游戏","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","BK4108":"电影和娱乐","GME":"游戏驿站","AMC":"AMC院线","BK4588":"碎股","BK4076":"电脑与电子产品零售","BK7063":"纸材料包装"},"source_url":"https://www.investors.com/research/meme-stocks-buy-now-january-2025/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2504949607","content_text":"Meme stocks like AMC Entertainment (AMC) and GameStop (GME) get their price spikes from exceptional buying interest. But those sudden and sporadic gains are as unpredictable as they are risky.Adding to that risk, GameStop undercut the 50 day moving average on Tuesday as shares dived 10%. Shares also lost the 21-day moving average for the first time since third-quarter results were announced on Dec. 10. Meanwhile, shares of AMC have also undercut both moving averages and remain in a downtrend.GameStop and AMC are known for volatile movements associated with meme stocks. But are meme stocks a buy now?↑ X NOW PLAYING What Are Meme Stocks And Should Investors Buy Them?AMC Stock At Risk From High Short InterestShort interest is running high for AMC. Based on a simple calculation using IBD MarketSurge data, short interest for AMC is 13%.A higher short interest can result in a spike in the stock price, should sellers try to exit their short position by buying the stock.Third-quarter results announced Nov. 6 lifted shares but the stock quickly gave back the gains. That showed that buying stocks just because they are rallying is a poor strategy. It is better to bring a time-tested method for stock picking and search for buy points in proper bases.Sales of $1.3 billion declined from $1.4 billion in the year-ago period, while a loss of 4 cents per share showed an improvement from a loss of 9 cents a share a year ago.In July, the company refinanced and extended $1.6 billion in debt maturing in 2026 to 2029 and beyond.The meme stock has IBD Ratings that are well below ideal levels. The Composite Rating is just 14.Panning out for a longer view, IBD MarketSurge's monthly chart highlights the wild swings that are typical of meme stocks. From a split-adjusted closing price of 11.49 on Dec. 31, 2020, AMC shares hit an all-time high 393.65 on June 2, 2021. That's a gain of 3,326%. But the stock has crashed since then.'Roaring Kitty' Ignites Meme FrenzyGameStop jumped after meme investor Keith Gill, aka \"Roaring Kitty,\" posted the image of a gift on Twitter/X on Dec. 25. Many investors took Gill's post as a cue to look at GameStop stock again. GameStop has a short interest of 7.9%.Earlier, on Dec. 5, the meme investor posted on Twitter/X an image of a mocked-up Time Magazine cover with a blank computer screen and keyboard.AMC soared after the post, but fell 9% the next day, after the movie theater company announced on Dec. 6 an agreement to sell 50 million shares, according to a filing with the Securities and Exchange Commission.GameStop reported its third quarter results on Dec. 10, a key event for meme traders. Sales of $860 million on a loss of 6 cents per share missed analysts' estimates of $887.7 million in revenue and a loss of 3 cents per share. Still, shares jumped more than 7% the next day.The company also stated that it plans a \"comprehensive store portfolio optimization review which involves identifying stores for closure based on many factors including an evaluation of current market conditions and individual store performance.\" The review may result in more store closures than in the past few years as GameStop seeks to attain what it calls \"sustainable profitability.\"During the quarter, the company also entered a new business and started providing autograph authentication for trading cards at some of its stores.GameStop's Risky TradingGameStop's volatility is cause for caution. For one thing, volatile movement provides little opportunity for well-formed bases.Further, the stock is down over 70% from its all-time high of 120.75, reached in January 2021.Going back further, the video game retailer grew an investor fan base in late 2020 at the height of the meme-stock frenzy. By January 2021, the meme stock shot up 1,625% to 81.25, then crashed to 9.63 the very next month.Investor's Business Daily recommends stock picks based on strong fundamental performance and chart action while also paying attention to the market and managing risk.GameStop has an IBD Composite Rating of 67, reflecting weak chart action and fundamentals.Meme Stocks Rally In MayMeme stocks rallied in May after Gill posted on X for the first time since the pandemic in May. AMC soared as much as 308% May 13-14 and GameStop gained 271% to the peak of the same two-day period. But today those gains have vanished almost entirely.AMC quickly gave up its gains after the movie theater company on May 15 announced an equity swap to exchange 23.3 million newly issued shares for bonds worth $163.9 million maturing in 2026.Top Financial Soars, Comes Back DownTop Financial (TOP) was a perfect example of meme stock volatility. The stock skyrocketed in one day from 48.60 to 256.44 on April 28, 2023 — a 428% gain. It quickly crashed and traded for under 10 by May 2023.Top stock came public on the Nasdaq in June 2022. The initial offering priced at $5 per share for 5 million shares. Shares popped on the first day of trading, reaching a high of 27.50.The stock rallied more than 50% in early May last year in meme-like action, then reversed gears and fell more than 70% in a single day. Shares have trended even lower since.The stock is trading around 1.60 a share now. It surged 65% on Feb. 9 and was back to its usual trading range the next day. There was no news on the company.The Hong Kong-based fintech generates revenue through commissions on trades of equities, futures and options. Its Composite Rating stands at 16.Meme Stocks A Buy Now?A meme stock is a speculative play, known for high levels of unpredictability because it can rally or crash in any market, and at any time. Its meteoric rises and heart-stopping crashes typically depend on social media hype and online interest. But short interest can also lead to erratic spikes that have no underlying cause.Hyper stock valuations for these companies depend, for the most part, on young fans and an anonymous following that can appear or disappear overnight. Retail investors dominate the interest in these stocks.These stocks do not follow traditional investment wisdom, which says you should buy stocks based on earnings growth and performance. As such, they are extremely speculative.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":0,"commentSize":1,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}