Investing
Midday Meme Stock Report for 8/19: AMC, ContextLogic, Robinhood, Senseonics
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With the three major indexes trading near the break-even line (or worse) Thursday morning, our portfolio of meme stocks had turned heavily into the red. The stock getting the most mentions on r/wallstreetbets was Nvidia. The chipmaker reported results that beat on the top and bottom lines, and investors overcame their initial wariness to push the stock over $200.
Thursday’s biggest winner among the meme stocks was Senseonics Holdings Inc. (NYSEAMERICAN: SENS), a medical diagnostics and research firm that makes an implantable continuous glucose monitoring system for diabetics. Analysts at H.C. Wainwright initiated coverage on the stock Thursday morning with a Buy rating and a $6 price target, the highest among seven brokerages that have rated the stock.
Among the losers, Robinhood Markets Inc. (NASDAQ: HOOD) had to be the most disappointing. Quarterly revenue more than doubled, but the net loss of $2.16 per share (GAAP) was disappointing. More disappointing was the company’s expectation for lower revenue in the current quarter and fewer new funded accounts. When the quiet period ends next week, we shall get our first look at what analysts really think about this stock.
AMC Entertainment Holdings Inc. (NYSE: AMC) also traded down Monday morning. It was still trading at almost seven times its average price target. That is seriously overvalued, even though the company has a much more solid cash position than it did a year. It recently signed a deal with AT&T for exclusive 45-day access to new movies, and there’s some talk of teaming up with GameStop to sponsor e-gaming competitions that would be available exclusively at AMC locations.
ContextLogic Inc. (NASDAQ: WISH) had no news Thursday morning, but that was no surprise. Since hitting a year-to-date high in early February, the stock has given back about 80% of the share price. The issue appears to be a question of survivability. There’s a lot of competition in the space, including from some big players like IBM and Oracle.
Senseonics stock traded up about 7% in the noon hour Thursday, at $3.35 in a 52-week range of $0.35 to $5.56. The average daily trading volume is around 28.3 million shares, and about 15 million had traded so far on the day.
Robinhood traded down about 7.3% to $46.15, in a post-IPO range of $33.25 to $85.00. The average daily trading volume is around 48.6 million shares, and about 13 million had changed hands thus far.
AMC was down about 4.5% to $34.90, in a 52-week range of $1.91 to $72.62. The average daily volume is around 170 million shares, and only about 27 million had traded.
ContextLogic traded down about 6.7% to $6.36, after posting a new 52-week low of $6.28 earlier in the morning. The 52-week high is $32.85, and the average daily trading volume is around 72.5 million shares. Around 33 million had traded.
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