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The meme-stock craze is carrying on, and Bank of America is flagging the new stocks getting attention from the Reddit crowd.
Meme stocks — names favored by retail traders on Reddit’s WallStreetBets forum — are on the rise again this week, led by AMC Entertainment, which is up 87% this week alone. The movie theater company announced Thursday it will sell 11.5 million shares, after the stock closed at an all-time high of $62.55 on Wednesday. AMC Entertainment dropped by as much as 30% on Thursday morning and trading was halted briefly for volatility.
The Reddit target said recent volatility and the level of AMC’s stock “reflect market and trading dynamics unrelated to our underlying business,” according to a filing it made with the Securities and Exchange Commission. Yet, investors keep piling into the heavily-shorted name.
In the past few weeks, Bank of America has been identifying the potential up-and-coming WallStreetBets targets by analyzing for clients how many mentions each stock gets on Reddit, among other things like short interest – that is, the number of shares that have been sold short by investors.
The Wall Street firm gave clients an updated list of the top small- to mid-cap stocks to watch during the return of the meme stock craze. The listed names have the most mentions on Reddit and short interest above the 5% average for the S&P 500 in the past week.
Take a look at the list here.