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Stocks on the move: Upstart, GameStop, and AMC

Yahoo Finance's Akiko Fujita and Brian Cheung break down meme stocks that are moving the most on Tuesday morning.

Video Transcript

BRIAN CHEUNG: Shares of Bed Bath & Beyond, let's say, go on a roller coaster. Shares are currently down right now about 11%. But this is after a day, yesterday, where we saw shares go as high as $13. We've seen a number of other meme stocks like AMC, GameStop move as well. But remember, Akiko, Bed Bath & Beyond was a $6 stock a week ago.

AKIKO FUJITA: So this is where we kind of break down why the stock is moving. Why is it moving?


AKIKO FUJITA: [LAUGHS] Here we are again talking about the meme trade, right?

BRIAN CHEUNG: And again. I think that the scale of what we're seeing today and at the beginning of this week isn't necessarily to the scale and magnitude of what we saw in the very infamous GameStop run up in the beginning of 2021. But you are starting to wonder, based off of the chatter that we're seeing on the likes of /r/WallStreetBets-- again, back in the limelight again-- they're targeting a lot of these stocks here. And you do wonder if this is the beginning of more movement.

Now, again, Bed Bath & Beyond kind of coming down now, so the scale of the rip higher isn't necessarily like GameStop. But it's still very noticeable to see these huge moves in a single day.

AKIKO FUJITA: Well, what's interesting to me is-- to your point, we don't want to make the comparison to what happened in January, 2021. That's not what we're talking about right now. But whenever we talk about these meme stocks moving without real news, we're still talking about the same names. It hasn't necessarily evolved in terms of those who've been added into that. I mean, if it is really about that, we're still talking about AMC, Bed Bath & Beyond. I mean, these are still the same names that are being targeted.

BRIAN CHEUNG: Yeah. And for what it's worth, I think broadly speaking, that is certainly the case. They're getting the most attention. But there have been a number of other names that are new to the game as well when you consider, for example, AMTD-- again, it's the Hong Kong-based company that saw-- what, it went up 14,000% in less than a month? Now, that story might be a little bit different.

AKIKO FUJITA: A little different.

BRIAN CHEUNG: We talked about it-- because their American depository receipts, it's a little bit different. Liquidity is much smaller in a particular stock like that. But you saw yesterday, MEGL, Magic Empire-- it's another Hong Kong-based company. They're not ADRs, but they are listed on the NASDAQ, 2,300% on its debut. Shares falling now, though.

I mean, broadly speaking, there's just a lot of retail interest in a lot of these stocks and a lot of people who might have a Robinhood account saying, hey, can I get in on this? Can I try to capitalize off of the popularity? You see a lot of options volume, right? Again, there's a lot of people betting that the stock is going to get higher. Maybe you can get an exercise price to buy it at a lower price. There's just a lot of action happening. And also important to remember-- it's a summer month of August that tends to be a little bit lighter.

AKIKO FUJITA: Lighter trading, yeah. Or the other option is just those who bought in early on and are still waiting for it to go up even higher. So there's that as well.