GameStop (GME) - Get GameStop Corp. Class A Reportand AMC Entertainment Holdings, Inc. Class A Reportare undoubtedly the most popular meme stocks on the stock market. So far this year, both stocks have been on a losing run. GME has dropped by 40% year on year, while AMC has decreased by 56%.
Investors who believe in the profit potential of these stocks would tell you that these declines mean it''s a great time to get into GME and AMC. Based on performance, engagement, and business principles, which one might be a better investment? Take a look at these guidelines below.
Which Meme Stock Should You Invest in in Figure 1:GameStop vs. AMC Stock?
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The Best for Performance
GameStop is the mother of all meme stocks. In fact, it was the stock that made the whole meme frenzy.
GameStop was trading for less than $5 per share for the most of 2020, and it appeared that the COVID epidemic would destroy the retailer for good. But then Ryan Cohen, the founder of Chewy (CHWY) - Get Chewy, Inc. Class A Reportbought around 10% of GME''s outstanding shares and joined the board.
GME reached a new high of $325 on January 29, 2021, handing some investors a million dollars.
GameStop''s stock closed out 2021, trading above $150 per share, generating a yearly increase of 687 percent.
GME has lost roughly 40% in the year to date, according to us.
AMC was a model for the 2021 release of a lot of short work due to the lack of its movie theater business in the face of the COVID epidemic.
In the first months of January 2021, AMC''s stock slowed from a slightly to $2 per share. However, it wasn''t until June 2021 that AMC stock achieved its most short squeeze, which increased by 2,450,00% from January 2021. AMC shares slowed by more than 1,180,00%.
AMC''s present year has been a difficult one. Although the stock received a record 117% in March after the company acquired a portion of its gold and silver miner Hycroft Mining (HYMC), year on year, losses in 2022 have increased to 56%.
The total returns for GameStop have been 493% since the month before the meme outbreak began in January 2021. AMC has been refunded 233%.
Figure 2: GME and AMC performance since December 2020.
The Best for Engagement
According to a data released in the middle of last year by the Securities and Exchange Commission (SEC), the GME meme frenzy was triggered by several reasons: (1) frequent Reddit mentions, (3) significant volume changes, and sure enough (4) increased short interest.
On Reddit, GameStop and AMC are often among the most discussed tickers. Of the subreddit forums dedicated to supporting both stocks, GameStop''s r/Superstonk has an incredible 782,000 highly active members. And the r/GME subreddit has 358,000 members.
The r/amcstock subreddit has 466,000 regular active members, and the r/AMCSTOCKS has 56,000 members.
Despite their huge short squeezes, both GME and AMC have relied on remarks on r/wallstreetbets. The famous subreddit has more than 12 million members.
The Best for Fundamentals
Both businesses have taken different positions in relation to their enormous share price appreciation, equating their financial capabilities.
Even with its fundamentals, it was far from ideal which was the primary reason for short sellers to target the stock in the first place. However, GameStop did not raise any cash by selling more equity. In fact, major shareholder and company chair Ryan Cohen recently bought even more shares, although GME''s valuation is out of sync with its fundamentals.
The CEO of GameStop has not been crystal clear about its strategy to enhance the company''s operations and maximize the value of its share price. Today, the main purpose that the company outlined is its intention to establish a NFT marketplace and other initiatives that involve blockchain and Web 3.0.
AMC has had a different story: Heavily affected by the epidemic, the firm was on the verge of bankruptcy and didn''t miss the opportunity to raise $500 million in cash from its equity offering.
Adam Aron, the CEO of AMC, who ended up selling some of his personal shares and credits shareholders with being a pivotal in keeping AMC on its feet and returning to pre-pandemic levels.
AMC''s business fundamentals have been significantly improved due to its meme status. It has expanded its offerings, implemented improvements in the theater infrastructure, and accelerated plans to acquire more. Other company products include retail sales of its branded popcorn, NFT projects, and other investments that aren''t related to its core business, such as the acquisition of a part of the Hycroft Mining gold and silver mining business.
(Disclaimers: this is not investment advice. The author may be lengthy one or more stocks mentioned in this report. Additional, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for the support of Wall Street Memes