AMC and GME Surge, BTC pulls back from recent highs
By John Shepard
09:11, 26 March 2021
Stocks of AMC Entertainment (AMC) and GameStop (GME) surged on Thursday as traders showed support for their turnaround plans. The video game retailer was up 52.69 per cent, while AMC was able to shrug off a losing streak this week with a 21 per cent gain on Thursday.
Bitcoin (BTC) went the opposite way – with losses on the week – to test the $50,000 level as markets awaited record options to expire on Friday morning. BTC is now trading at $52,775 after a bounce but may see volatility nearer the expiry at the start of the US session.
GameStop surges after earnings gloom, AMC follows
GameStop earnings this week could not help the stock initially despite the benefit of a PS5 launch – and net sales were lower for the quarter. Other news saw the announcement that eight of the company’s board members would be departing. This had traders worried about the dramatic move. The boardroom shuffle is likely because of the strategy shift under Chewy founder Ryan Cohen and the executives may have not aligned with his plans for the company.
AMC stock shrugged off a three-day slump to join the Thursday rally with the stock back above the $10 level. AMC is now seeing support from recent cinema re-openings.
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Robinhood, the online brokerage that was caught up in the GameStop short squeeze in January, is set to list on the stock market. The company submitted plans on Tuesday for an initial public offering in the US.
Deliveroo is another company that is about to see a public listing in London. The firm has come under fire for its treatment of staff members, and some investors are not looking to buy into the IPO for that reason. Three of the UK’s largest asset managers are among those that want to avoid the Deliveroo listing, in a setback for the firm. Legal & General Investment Management, Aberdeen Standard Investments and Aviva Investors said that the company does not support their social terms for investment.
BTC stumbles as $6bn options expire
Bitcoin has tumbled this week after the failure to hold the $60,000 price level. Options markets are set to see volatility on Friday as a record $6bn in contracts expire on Friday.
BTC was in need of a correction and larger traders will be sitting on the sidelines waiting for the move to play out. The market may see buyers emerge once the options contracts are closed out. News this week saw Elon Musk announcing that consumers can now buy Tesla with Bitcoin.
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