This is a discussion assignment. Here is the instructor’s Post: AMC Leads Meme S
This is a discussion assignment. Here is the instructor's Post: AMC Leads Meme Stocks on a Wild Ride-WSJ "Meme stocks are on the move again—while the broader market is running in place. Shares of AMC Entertainment Holdings (Links to an external site.) Inc., GameStop (Links to an external site.) Corp. and other stocks popular with individual investors swung sharply again Friday. They have surged over the past two weeks, a frenetic rally reminiscent of the Reddit-fueled craze of late January (Links to an external site.). AMC became the latest darling of investors who have banded together on social media in a bid to propel the shares higher. Shares of AMC dropped 6.7% Friday but held onto a gain of 83% for the week. That has extended the stock’s gains for the year to more than 2,100%. Its daily average trading volume this week has more than tripled the 2021 average. The S&P 500, meanwhile, has waffled in a narrow range as investors parse signals about inflation and the labor market that could feed into the Federal Reserve’s next moves (Links to an external site.). The benchmark rose 0.9% Friday after the monthly jobs report showed employers added 559,000 jobs in May (Links to an external site.), fewer than economists had projected—a snippet of evidence that could weigh against the Fed moving up its timeline for raising rates or easing back on bond purchases. Investment professionals have cautioned that the week’s hot stocks are a risky play. Even AMC agreed: In a filing Thursday with the Securities and Exchange Commission, the company said its current prices reflect market dynamics unrelated to its business—and that investors should be prepared to risk losing their money (Links to an external site.). “The meme stock rally is not too dissimilar to a typical pump and dump, which tends to hurt a retail investor,” said Jonathan Waite, senior research analyst at Frost Investment Advisors. “These stories don’t tend to end well.” How do you think the meme-stock craze will affect markets long term?

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