Opinion: GameStop and AMC’s ‘Diamond-handed HODLers’ get beaten up on Mondays by soft-handed mobs


Since January, the names of the biggest stocks memes have been spoken in the same breath as they both seemed to subscribe to the same narrative: that short-selling hedge funds try to drag them down with nastiness and the “army of monkeys ”of retail investors are pushing prices up by buying when numbers fall to create the“ Mother of all short cuts ”.

But the owners of GameStop GME,
these are not the same people who own AMC Entertainment AMC,
They never have been, and they are increasingly fed up with being treated as if they are, causing increasingly visible disruptions in the online communities that govern debates over stocks of. memes.

On Monday, however, people who aren’t cynically short or religiously long on either stock were shown to consider them roughly the same and no longer like either. other… not that they saw them separately.

GameStop shares fell 13.9% as fellow colleague AMC Entertainment’s share price fell 15.3%. Equities more generally took a slight breather to start the week, thanks to growing fears about inflation, the omicron variant and anxious anticipation of now very important monetary policy statements from the Federal Reserve.

According to Wedbush analyst Michael Pachter, “AMC is down more because of insider sales, and GME more because of Ryan Cohen’s complete lack of strategy. “

This may well be true for the big institutions that are still waiting for the activist President of GameStop to be clearer on how he will turn the video game retailer into an ecommerce powerhouse, but from what we see today , it seems the biggest problem with GameStop’s stock is AMC action… and vice versa.

For AMC, the day was just a continuation of a recent bloodbath for the movie chain’s stock. Insider share sales by CEO Adam Aron and CFO played a significant role in this setback, which shook some confidence in the corporate leadership of Aron, the Lover of Monkeys and Lord of Memories. throughout 2021.

Aron’s perceived betrayal of the investor base he has cultivated with the attention of Twitter and popcorn comes at a most inopportune time for AMC, as the omicron “tidal wave” appears to be ravaging the world. UK and could cut what Aron billed as a massive blockbuster – the heavy party season in theaters.

But what the apes really felt about selling Aron followed partisan lines.

“Standard AA review is bullshit,” was the headline of a popular r / AMCstock subreddit article on Monday, referring to Aron by a popular alliterative nickname.

“Any CEO with a brain would regularly sell stocks too, especially when they’re up 200%, especially when he could be chased in the future by shorts trying to pretend he’s ‘pushing the squeeze’ all the way through. long 2021 “, we read in the argument. “They don’t have to be right in saying that, they just have to persuade a court.”

Aron had fewer supporters among GameStop’s retail investors, who are unhappy that their short-term campaign is still tied to “popcorn stock” and who see Aron’s attempts to appease his investors with polls Twitter, free snacks and NFT movies like Flattering.

One tweet summed up much of the ever-growing schism between the self-proclaimed “AMC Apes” and “GME Apes”.

But, while the generally bad vibes around AMC may have had a big impact, that didn’t make it much different from “video game stock.”

According to Dan Pipitone, CEO of TradeZero, AMC was in the top 10 best-selling stocks on its platform on Monday. But, overall, AMC’s short volume only increased 0.6%, according to Ortex data, which could be due to the fact that Fidelity data showed its users trading AMC. at a buy / sell ratio of almost 4 to 1.

Pipitone didn’t see GameStop near the top of TradeZero short trades, but Ortex showed short sales rose 0.9% on Monday despite Fidelity’s buy-to-sell ratio of nearly 10 to 1.

Data from HypeEquity showed that social media mentions of both stocks soared on Monday, with 15% of posts on GameStop mentioning AMC and more than 25% of posts on AMC mentioning GameStop.

On Twitter and Reddit, many followers of both stocks have continued to blame short sellers and shady market makers whom they see as the ultimate evil of the market, and it is likely that short sellers have played a key role. and profitable in such declines, but there just wasn’t enough short volume (no, not even the naked guy) to really dictate the action.

Days like this, Reddit and Twitter fill up with die-hard monkeys telling MSM that “It wasn’t retail!” And, today, we couldn’t agree more. But it wasn’t hedge funds either.

What appears to have happened is that non-diamond dabblers in meme stocks took Monday’s very bearish macroeconomic news and the recent pullback in the two main meme stocks as a signal that it was time to stop trading. splash around and get lighter in the two names… which they don’t really see a difference between, anyway.

“It was everyone,” reflected a macro hedge fund manager near Monday’s closing bell. “Believe it or not, there are other people in these actions, and they don’t see their buying or selling as religious. They only see it as trade.

For those mid-sized funds, brokers for wealth managers, and non-Ape retail players, meme stocks are now kind of an investment class, with GameStop and AMC just key names in their portfolios.

Even money is still flowing

While it might have been a not-so-manic Monday for GameStop and AMC – and Robinhood HOOD,
and bed, bath and beyond BBBY,
to be fair – it was a pretty funny start to the week for some biotech penny-stock names that merged the suddenly free cash flow of meme prospectors with fear of the omicron variant into a bargain market.

Shares of Biofrontera Inc. BFRI,
+ 27.00%
jumped 27% as a BELLUS Santé BLU,
+ 48.21%
climbed 48.2% as it appeared speculation in the industry returned with the cold and rising COVID infection rates.

Coronavirus Update: United States moves closer to 50 million confirmed COVID-19 cases and 800,000 deaths, as New York begins week with new face mask warrant


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