The meme-stock frenzy is as crazy as ever, and Bank of America is flagging the new stocks getting attention from Reddit traders.
Meme stocks — names favored by retail traders on Reddit's WallStreetBets forum — have been on the rise again, led by AMC Entertainment. The movie theater company is up about 80% this week alone, even with a sharp pullback on Thursday after it announced plans to sell 11.5 million shares. After closing at an all-time high of $62.55 on Wednesday, AMC dropped by as much as 30% on Thursday morning and trading was halted briefly for volatility.
In a filing with the Securities and Exchange Commission, AMC said recent volatility and the level of its stock "reflect market and trading dynamics unrelated to our underlying business." Yet, investors keep piling into the heavily-shorted name.
In the past few weeks, Bank of America has been identifying the potential up-and-coming WallStreetBets targets by analyzing for clients how many mentions each stock gets on Reddit, among other things like short interest – that is, the number of shares that have been sold short by investors.
The Wall Street firm gave clients an updated list of the top small- to mid-cap stocks to watch during the return of the meme stock craze. The listed names have the most mentions on Reddit and short interest above the 5% average for the S&P 500 in the past week.
Take a look at the list here.