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Retail investors power GameStop stock into a rally

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Myles Udland, Brian Sozzi, and Julie Hyman discuss Gamestop’s rally over the past couple of sessions as retail investors gave the company a boost in the market and what this latest surge could mean for the meme stock going forward.

Video Transcript

JULIE HYMAN: There's another group that I want to switch gears a little bit and focus a little bit more on. And that's the meme stocks which of course, we love talking about on the show. And they've had a little bit of a resurgence this week. And as is not atypical with the meme stocks. There hasn't been particular catalyst necessarily.

But it's been sending them there but it really started Friday, Monday time frame that we started to see these stocks surge again. Really Monday in earnest is when we started to see them go up quite a lot. So whether you're looking at an AMC, or GameStop, or some of the other less cited names.

You look at that five day chart and you see the surge that has been beginning to happen here. Trading volume has also been jumping by the way. AMC 200 million shares. I believe yesterday, for the first time since mid-june. GameStop-- a lot of volume as well. And options trading has picked up for these names as well. So it's been an interesting resurgence here.

Myles, you know, you've always been in the-- sorry-- or I'll go to Myles, Sorry, reading slack and speaking at the same time folks. Myles, you have long been of the mind. I think that this is a trend that's not going to go anywhere. And so it seems in keeping with that we get these little kind of bursts of activity.

MYLES UDLAND: Yeah, I mean, that's kind of all, there is to say, right. I think you know, I mean, seriously, like people are going to-- people will twist themselves into knots around what the meme trade means, what it doesn't mean, and the implications of it. And the implications of it is a handful of names that have-- some of them have compelling-ish business turnaround stories like a GameStop. Others you have analysts pounding the table that the companies is-- actually the equity is actually worth zero.

That might be the case of a certain movie theater operator. We've talked to some of those analysts on this program. But you know, you can twist yourself again, as I said, into all of these knots around what it means, what it doesn't mean, so on and so forth. The reality is that more people are in the market and more people are swarming around certain trading ideas for reasons which may be serious but may also be in kind of keeping with the spriti of the internet, which is that it's a joke and we're all in on it.

And there may be some real world consequences as a result of that. And sometimes the real world consequences are the share price of GameStop goes up 30% in two days. And that's fine. But again, if there's anything to take away, it's just a reminder that this is a part of the market. This is a feature of the market until further notice. And I know that people are quite excited about AMC share sales are going down about 50% from their highs but remember this was a mid- to low single digit stock. And it's now floated between 30 and 40 for some time. The story for that stock has changed quite a bit. And again, as I mentioned, until we can say otherwise, the meme trade is still alive and well.

BRIAN SOZZI: And I'll just do a little promotion here to. One of the most interesting pages on the Yahoo Finance platform, at least to me, is the trending ticker page. I watch this religiously throughout the day. You here Jared Blikre frequently metioned-- mentioning it, pointing out stocks moving.

AMC shares popped up for the first time, really, in about a month on the trending ticker page. Monday afternoon shares were up about 6%. Definitely caught my attention. I hadn't seen it up there in a while and now look, AMC shares are now the top turning ticker on the platform. And have tacked on what, about 30% over the past five days.

And to your point, really there is no-- really no news. You're seeing the volume pick up in these names. Like Julie mentioned, at GameStop, a blackberry, and an AMC but again, nothing I would say that is actually driving this. I will toss this one out there-- you know, just because it's Monday morning and the markets are a little bit boring. But you know in periods of peak market activity-- just in terms of peak stock prices near records, you've seen these meme stocks. I would say percolate when we would get a downdraft in the market near term when I'm talking any correction or bear market ridiculousness.

But it seems to be retailers are really on the pulse of market sentiment. So I would watch to see if these stocks continue to trend higher over the next couple of days. That might mean something for the broader market. But again, something to worth-- just to watch moving forward.

JULIE HYMAN: Yeah, definitely. You said AMC is number one on trending tickers. GameStop number two. Blackberry's on their naked brands, which has been another frequent appearance on the meme stock list.