2021 saw a historic event in the financial markets. It was so big that books and movies were even made about it to explain the nature of markets, where there is psychological consistency behind a single trend. Some might say that bubbles inflate and burst; others call the herd mentality inherent in the stock market. No matter how investors look at it, the same boom and bust of 2021 could soon repeat itself.
Twitter username RoaringKitty is back on the scene as he was responsible for so-called “meme stocks” reaching stratospheric heights in 2021. As is his wont, his latest tweet gives subtle hints that now may be the time for stock. from GameStop Company. New York Stock Exchange: GME and even AMC Entertainment Holdings Inc. New York Stock Exchange: AMC to orchestrate new potential booms and make those willing to bet on the trend become rich overnight.
However, before making any decisions, an in-depth analysis of the current situation of these stocks is necessary as these companies do not have the fundamental strength to sustain the rally or sustain it in the long term. That’s why a review of past events is necessary before determining where this stock stands today.
Rinse and repeat cycle in mem drains
Since the crisis of these companies in 2021, the management has adopted the same strategy to keep these businesses afloat. Since neither GameStop nor AMC generate positive free cash flow, they rely on shareholder dilution to fund their operations and keep the lights on.
However, favorable prices must first be created for shareholder dilution (releasing shares to the public market) so that more capital can be attracted to these companies.
This is where the “rinse and repeat” strategy comes in handy. Every few quarters or so, these companies run out of money. RoaringKitty then creates content that new investors view as professional advice. The stock soars to sky-high valuations, management dilutes the stock, and prices fall again to start the cycle all over again.
Knowing that this is the typical modus operandi for GameStop and AMC stocks, investors need to approach this situation with very small allocations as a percentage of their portfolios in case the broader markets are not in the same psychological state as they have been since 2021 .
GameStop Stock Showing Signs of Accumulation: Is It Time to Rise?
GameStop stock forecast today
US$10.00
-64.21% DisadvantageSell
Based on 1 analyst estimates
| High forecast | US$10.00 |
|---|---|
| Average forecast | US$10.00 |
| Low forecast | US$10.00 |
GameStop stock forecast details
As investors dig deeper into GameStop stock volume data, it becomes clear that there are signs of accumulation around the $25 level. Given that the stock hasn’t spent much time at this price, it would appear that whoever built the position in the stock is ready to start taking it higher.
This could also be an opportune time today, as the price of Bitcoin, another risky asset class linked to the performance of meme stocks over time, recently surpassed the much-coveted $100,000 per coin level. Now that there is euphoria in the market and a sense of easy profits, it is the perfect time for RoaringKitty to entice the rest of the market to make another big bet.
The psychological state of the market now will make it easier to reinvest profits made in Bitcoin into another quick scheme. This time, there are clear signs of where GameStop could end up in the short term, beyond potential accumulation volume. The answer lies in a clearly positioned stock options chain.
More than 60,000 contracts were open for call options on the $125 stock expiring in January 2025. That means some investors are betting that GameStop shares could hit a high of $125 or more in a little more than a month from today.
While this seems like a bold bet, if you look at previous GameStop manias, this view fits into reality. However, this does not eliminate the risk associated with tracking the maniacal masses behind RoaringKitty’s posts.
Will AMC Join the Manic Market Rally?
AMC Entertainment stock forecast for today
$5.44
Growth potential 20.62%Reduce
Based on ratings from 6 analysts
| High forecast | US$10.00 |
|---|---|
| Average forecast | $5.44 |
| Low forecast | US$3.20 |
AMC Entertainment Stock Forecast Details
By association, the answer is yes. Whenever a meme-mania rally hits the market, AMC stock tends to follow suit, and this time will likely be no exception. Over the past 12 months, investors may have come to the same accumulation conclusion as most of this company’s stock volume came at the $5 per share level.
Moreover, institutional investors may already be aware of the rinse and repeat strategy that management tends to employ in this company. For example, Geode Capital Management increased its holdings in AMC stock through November 2024 to show signs of confidence in the coming months.
With a recent 12.1% increase in assets, these institutional players now have up to $36.6 million invested in AMC shares, which is also close to State Street’s $33.5 million position with another 14.6% increase over the same period. when Geode Distribution.
The evidence is there and the timing seems right as cryptocurrency markets break through key psychological levels and boost morale for riskier bets. These are tail-risk trades in which investors can—and should—put in only a small portion of capital for a chance to make a big move.
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