Flavor of the Week: Meme Stocks
Hey friends! I was in Miami this past week to meet up with other finance YouTubers who were attending the Bitcoin conference (photo at end of today’s newsletter). I did not attend the conference but was mostly there to learn from other YouTubers how I could become a better YouTuber.
Overall I would like to continue covering all topics of Personal Finance, and also get to know all of you a lot better through my content and newsletters.
This week’s roundup was curated by Rickie - my friend and editor who helps out on the channel. Here’s what he has to say about this week’s happenings, and you’ll also find some opinions by me as well.
RH: Humphrey and I are incredibly excited to be bringing you this weekly newsletter. We hope to provide some more insight into Humphrey’s week beyond the TikTok and YouTube as well as a news update so you’ll always stay on top of what’s current.
Weekly News Roundup
AMC Extends Surge as Reddit’s Retail Frenzy Reaches New Heights (Bloomberg)
After a 260%+ surge last week, it seems like the AMC run has cooled off a bit heading into this week dipping 18% on Thursday and closing at $48 on Friday down from its $67 high.
The movie theater chain traded flat ever since reaching $20 highs at the end of January where it dipped down to ~$10 a share for the last 5 months. The Reddit retail trading army continues to pump the stock making the company worth close to $30 Billion (more valuable than half the S&P 500), leaving Wall Street shocked.
HY: Personally not invested in AMC, and would be afraid to touch it at current prices (anything above $40-50/share) if I was looking for a 10x return, I’m probably not getting it at a price of $50/share! I’m looking elsewhere.
U.S. Jobless Claims Dip Below 400,000 for First Time in Pandemic (Bloomberg)
Hirings seem to be accelerating as the economy continues to strengthen heading into the summer. Initial claims in the week ended May 29th, the Labor Department data showed 385,000 new claims representing a decrease of 20,000 from the week prior. Progress is being made in the labor market where more fully-vaccinated Americans return to traveling and socializing.
RH: The last month marked the 4th straight positive month for the S&P as investors take to the market to show their optimism for the U.S. recovery. Along with vaccination rates and case numbers, the light at the end of the tunnel looks closer day by day.
Facebook hit with new antitrust probes in the UK and EU (CNBC)
In a rare probe on a large U.S. tech giant, a formal competitions investigation has been launched into Facebook by regulators in the U.K. and the EU to ascertain if Facebook has gained an unfair advantage using the advertising data from Facebook Login to benefit Facebook Marketplace and Facebook Dating.
Facebook’s share price dipped a little more than 1% on the back of the announcement on Thursday but recovered on Friday to end the week flat.
HY: This won’t be a threat to FB yet - as reform for antitrust, if it is to take place, may take 3-5+ years. FB stock has been solid the past few years.
Term of the Week
Free Cash Flow
The cash a company generates after taking into consideration cash outflows that support its operations and maintain its capital assets.
In Case You Missed It
Photo from Miami - YouTubers include: Charlie Chang, Brian Jung, Nate O’Brien, Ask Sebby & Mandy, Justin Oh!
See you all next week!- Rickie & Humphrey