stocks suddenly popped up on what was otherwise a typical quiet Friday for meme stocks.
After trading around $ 44.12 shortly after noon, the AMC stock (ticker: AMC) suddenly jumped. Shares rose 12% to $ 48.01 shortly after noon. 14, analysts at S&P Global Ratings on Thursday gave
a credit rating upgrade following its efforts to raise cash.
the originally wildly volatile meme stock (GME) rose 1.4% to $ 223.55. Shares of
(NOK) fell 0.6% to $ 5.42, while
share (BB) rose 1.4% to $ 14.09.
AMC’s sudden breakout bucks a recent trend. Since April 30, but before the last jump, the AMC stock averaged an absolute pull – meaning in both directions – of 3.5% on Fridays compared to 14.1% on the other weekdays during this period. The GameStop stock had seen similar trends and was averaging an absolute pull of 3.81% on Fridays compared to a daily average absolute pull of 7.8% the remaining weekdays, according to Dow Jones Market Data.
News of GameStop dominated meme stock trading this week. The video game retailer gave investors a ton to digest, including two major hires, earnings results and plans for a stock sale at market prices.
Both AMC and GameStop rose last month as gains in their price forced traders who had bet that stocks would fall to cover or close their positions. Their purchase sent the shares still higher in a so-called short press, but the GameStop share fell about 27% on Thursday. Friday’s move was a modest postponement for those who own the shares in hopes of further gains.
Ihor Dusaniwsky, CEO of short selling analytics firm S3 Partners, noted that both AMC and GameStop still have enough short sellers to trigger greater pressure. After closing Thursday, he estimated GameStop’s short-term interest rate at 11.23 million shares or 19.4% of total available trading. For AMC, he briefly estimated interest at 69.85 million shares or 14% of the float.
He says short sellers have covered 685,000 GameStop shares worth $ 207 million over the past 30 days – most of which came over the past week. For AMC, short sellers have bought 20.6 million shares worth $ 1.02 billion over the last 30 days.
“AMC’s stock price continues to be volatile, with short sellers making or losing hundreds of millions of dollars daily,” he said.
Those who expect meme stocks to calm down next week should keep in mind that the busiest days of GameStop stocks since April 30 have been Mondays with an average drag of 9% drag and Thursdays of 9.3%. For AMC, Wednesday and Thursday are the busiest days with an average of 23% and 15% movement in both directions on the respective days.