AMC, Lucid, Newegg, Workhorse – 24/7 Wall St.
Bitcoin is threatening the $40,000 level again Monday on speculation that Amazon is exploring the possibility of accepting bitcoin and, perhaps, other cryptocurrencies for payment on its e-commerce website. While this has no direct impact on the meme stocks, it does indicate investor interest in alternative investments.
Among the meme stock winners Monday was AMC Entertainment Inc. (NYSE: AMC). The company may have turned the corner on a weeklong losing streak, but it still has a ways to go to get back to its level of early June. Weekend box office results were weak, but that could be because the new releases were “weak,” according to Deadline, and added to resurgent coronavirus infections. Box office receipts across the industry fell by 69% week over week.
Lucid Group Inc. (NASDAQ: LCID) finally completed its business combination with blank-check company CCIV and began trading Monday morning at $25.24. The company had wrangled enough shareholders to vote last Friday on a crucial part of the combination agreement. That they were able to do so is good news for Saudi Arabia’s sovereign wealth fund, which owns about 60% of Lucid and saw its $2.9 billion investment in the EV maker generate a profit of nearly $20 billion.
Workhorse Group Inc. (NASDAQ: WKHS), like AMC, mostly has trended down for nearly two months and got a bit of a breather Monday. Shares were trading higher, probably as investors are pleased by Lucid’s entry into the market. The company has yet to recover from the loss of a federal contract to replace billions of dollars worth of U.S. Postal Service delivery vans.
Newegg Commerce Inc. (NASDAQ: NEGG) was Monday’s big loser among meme stocks. The company is controlled by a Chinese parent, and although it lacks the high profile of Alibaba or DiDi, Newegg could get swept up in any housecleaning the Chinese government decides to do for Chinese companies that are listed on foreign stock exchanges.
AMC stock traded up about 7.2% to $39.67 in the noon hour Monday, in a 52-week range of $1.91 to $72.62. The average daily trading volume is around 173 million shares, and about 75 million had traded so far on the day.
On its first day of trading, Lucid’s range was $24.32 to $28.56. At a recent price of $26.43, the stock was up about 4.7% for the day. More than 21 million shares had traded thus far.
Workhorse traded up about 5.4% to $11.37, in a range of $7.07 to $42.96. The average daily trading volume is around 18.9 million shares, and about 6.5 million had changed hands on last look.
Newegg traded down about 4.7%, at $23.25 in a range of $2.80 to $79.07. The average daily trading volume on the stock is around 3.5 million shares. Around 630,000 had traded by early afternoon.
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