Yahoo Finance Live looks at the meme stock market as Wedbush lowers its price target for AMC amid its APE shares debut.
RACHELLE AKUFFO: Well, speaking of fair weather, you've got to talk about the meme stocks. That's what I'm watching. Now we're seeing that AMC continues its fall-- as you can see there, down about-- just about 6.7%-- while AMC preferred units, or Ape, actually bouncing back this afternoon after a morning dive. That's currently up about 21%.
Now Wedbush analyst Alicia Reese still has an underperform rating for AMC and actually lowered the price target from $4 to $2. But she did say she expects AMC to wait for Ape shares to stabilize with AMC, then issue portions of its authorized Ape shares for cash to pay down the majority of its outstanding debt. Now, of course, each bounce in the stock gives AMC at least some breathing room to raise capital, fund acquisitions, or perhaps even pay down debt.
Now, of course, GameStop was one of those ones that was able to capitalize on its meme status. But that happened at a time of high valuations. And then of course, you have some retail investors hoping for that same sort of rebound for Bed, Bath & Beyond. And that's after the stock dropped about 60% from its high on Wednesday. But of course, not all meme stocks are created equal, and the risks incredibly high. We'll have expert insight on the biggest mistakes that retail investors are making right now and how to bounce back from them.