The Meme Stock Boom is Over

Today is Tuesday, December 14, 2021.

The Meme Stock Boom is Over

Shares of GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) plummeted on Monday, signaling a potential end to the meme stock trade that dominated 2021.

Numbers: Both GameStop and AMC, the two darlings of the meme stock trade, posted multi-month lows as part of a larger market selloff on Monday. GameStop fell 13.96% and AMC dropped 15.31%.

Catalyst: Most of the meme stocks have been fading in recent weeks. The short squeezes that played a role in the rise of meme stocks are no longer as prominent. Additionally, investors have become less interested in these meme names.

Glass Half Full: AMC and GameStop have produced slightly better-than-expected earnings this quarter. There is still some optimism that both companies can bounce back.

Final Thoughts: Despite recent losses, both AMC and GameStop are still up by a lot this year.

Notables

Notable Earnings Today: Aspen Group (Nasdaq: ASPU), CleanSpark (Nasdaq: CLSK), SeaChange (Nasdaq: SEAC), Skillsoft: (NYSE: SKIL).

Notable IPOs Today: Parsec Capital Acquisitions Corp Class A Common Stock (Nasdaq: PCX), 8i Acquisition 2 Corp. Ordinary Shares (Nasdaq: LAX), Sidus Space, Inc. Class A Common Stock (Nasdaq: SIDU), Kairous Acquisition Corp. Limited Unit (Nasdaq: KACLU).

Notable Equity Crowdfunding Campaigns Ending Today: Everybody Water (StartEngine), EX Venture (Wefunder), Whip (StartEngine).

Notable Economic Events Today: Producer price index (8:30 a.m. ET), API weekly crude oil stock (4:30 p.m. ET).

Kansas City Southern Merger Complete

The merger between Canadian Pacific Railway (NYSE: CP) and Kansas City Southern (KSU) is expected to close today, concluding a process that began months ago.

Numbers: Shares of Kansas City Southern are up 48% this year, surpassing many large companies in the railroad industry.

The Good: Investors are looking forward to the merger. Shareholders of Kansas City Southern will get $37.50 for each share of their stock.

The Bad: Despite the success of Kansas City Southern this year, the stock price might be overvalued to some investors.

Final Thoughts: The real questions should be reserved for Canadian Pacific. Can the railroad giant have a better 2022 than its lackluster 2021?

90% of Bitcoin Supply Mined

90% of all the possible Bitcoin in the world has been mined, according to Blockchain.com on Monday.

Details: There is a total supply of 21 million Bitcoin. Nearly 18.9 million Bitcoins have already been mined.

Dates: The first Bitcoins were mined nearly 13 years ago in January 2009. The remaining Bitcoins will not be mined until February 2140.

Numbers: As Bitcoin’s supply reached the 90% threshold on Monday, the price also fell by over 3%.

Final Thoughts: The circulating supply of Bitcoin is also likely less than 18.9 million because many coins are lost.

Trends to Watch

I’m Lovin’ It: Beyond Meat's McPlant launching nationwide at McDonald's early next year (Seeking Alpha)

Taking Chips Off the Table: MGM will sell iconic Las Vegas Mirage Hotel in $1 billion deal (USA Today)

Thinking About It: Germany's trillion-euro savings banks mull crypto wallet (Reuters)

Ambitious: Harris unveils plan for electric vehicle charging network (Associated Press)

Embracing the Buzzword: Intel wants to take you inside the metaverse (Quartz)

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