Do you have diamond hands? In the grand scheme of things, so-called meme stocks, including Gamestop, AMC and others, have done the impossible this year. With values that have stunned conventional analysts and baffled bears, these stocks have captured the fascination of one of the mightiest forces on the planet: the internet. And recent weeks have been kind to the stocks which have spawned their own memes (#APESTOGETHERSTRONG.) Today, however, the wave reversed as all of the major meme stocks fell. Despite announcing two high level executive hires from Amazon, Gamestop fell over 27%, though it’s regaining some momentum in after hours. AMC, who has seen the greatest growth in recent weeks, fell over 13%. Two new objects of internet fascination, Clover Health and Clean Energy Fields, both fell over 15%. What’s difficult about these meme stocks is trying to chart patterns and trends which make sense. These run ups have been the product of a slew of obscure factors: hype being the first, but also rabid talk about short squeezes and enthusiasm about other company turnarounds and returns to normalcy post-pandemic. Both Gamestop and AMC have used this momentum to redefine their businesses after being on the brink of bankruptcy. But, in a parallel to many tech stocks, the profitability doesn’t justify the high price points. Weeks like these, and days like these, are evidence that meme stocks are as volatile as they are exciting. As AMC’s own advisory board warned: trading in meme stocks are not for the feint of heart. Source