One other day, one other spherical of positive factors for Reddit shares GameStop (NYSE:GME), AMC Leisure (NYSE:AMC), BlackBerry (NYSE:BB) and Nokia (NYSE:BB). This time, there doesn’t seem like any company-specific information. With that in thoughts, what do it is advisable to find out about GME, BB, NOK and AMC inventory proper now?
Supply: Shutterstock / TY Lim
As a reminder, Reddit shares have been on the transfer since final week, following information that GameStop CFO Jim Bell would resign on the finish of March. Buyers are hopeful that activist investor and board member Ryan Cohen can flex some muscle mass with the brand new CFO. If Cohen can herald somebody with expertise in e-commerce or tech, GameStop might turnaround. Think about ongoing short-squeeze enthusiasm and the facility of r/WallStreetBets, and you’ve got a recipe for a rally.
This week, that vitality continues on. BlackBerry, Nokia and AMC every gained on Monday. GameStop was an actual winner, with shares closing increased by greater than 18%.
At this level, there’s not a lot else particular transferring Reddit shares. Redditors preserve supporting the shares, encouraging one another to buy extra and to maintain holding. Some are hoping for GME inventory to retouch $500, and even hit $800.
Nonetheless, there’s one key factor for buyers to observe…
Reddit Shares Meet Congress, Take Two
President Joe Biden picked Gary Gensler to move up the U.S. Securities and Trade Fee, and Rohit Chopra to steer up the Client Monetary Safety Bureau. Tomorrow, Gensler and Chopra should go earlier than the Senate Committee on Banking, Housing and City Affairs. There, they’ll give perception into a brand new period of market oversight. They can even have a tricky process of answering Congressional questions on the whole lot from earnings inequality to cryptocurrencies.
One matter on the agenda is GameStop, and extra broadly, the rise of meme shares. What is going to Gensler and Chopra must say concerning the frenzy? And maybe most significantly, what’s going to they argue concerning the function of social media? With the SEC already paying shut consideration to the usage of social media in share worth manipulation, their interpretation of what occurs on r/WallStreetBets is vital. Plus, as Bloomberg reported, Gensler and Chopra will speak about protections for unsophisticated retail buyers and cost for order movement. Each of these themes have taken up fairly a little bit of actual property on Wall Avenue currently.
Preserve an in depth eye on Reddit shares. The rocket journey has not ended but.
On the date of publication, Sarah Smith didn’t have (both straight or not directly) any positions within the securities talked about on this article.
Sarah Smith is a Internet Content material Producer with InvestorPlace.com.