shares of AMC Entertainment (AMC -1.33%) When game stop (GME -2.66%) Both were down in Wednesday morning trading, with no news specific to memetic stocks and a run-back to a more active broader market.
At 10:47 a.m. ET, the S&P 500 jumped 284 points, up 2.3%, when movie theater operators fell 3.3% and video game companies fell 3.4%.
Both AMC and GameStop had higher overtime runs, but are now trailing losses over two days. AMC had his 6 days up, while GameStop had his 9 days stocks soar.
The theater operator’s surge follows its second-quarter earnings report and announcement that it will issue new preferred stock for shareholders trading under the ticker symbol APE. AMC has said it will raise capital using equity as it has limited funding capabilities in common stock.
GameStop’s launch was part of the resurgence of the memestock craze as residents of the same internet stock chat room. Bed Bath & Beyond (BBBY -1.84%) Also, the stock price was up for 9 days.
This kind of volatility is not uncommon, as memetic stocks tend to move more based on social media mentions than on business fundamentals.
But AMC Entertainment’s investors see the new preferred stock as a means of betraying short sellers who have promised to continue to see the theater operator’s share price fall. Both Beyond continue to be heavily shorted.
Approximately 18% of AMC’s outstanding shares, GameStop’s 24%, and Bed Bath & Beyond’s 42% are sold short.
Rich Duprey has no positions in any of the mentioned stocks. The Motley Fool has no positions in any of the companies mentioned. The Motley Fool’s U.S. headquarters has a disclosure policy.