AMC Entertainment and GameStop made headlines before the bell as their shares fell in early morning trading. The meme stock craze, reignited by a social media reappearance from “Roaring Kitty,” lost momentum. AMC announced it would issue more than 23 million shares in exchange for $163,850,000 aggregate principal amount of its 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026, causing its shares to drop over 7%. GameStop shares also slid 6% in response to the overall decrease in meme stock interest.
Boeing saw its shares slide 1.1% after it was revealed that the company violated a 2021 settlement related to its two fatal 737 Max crashes. This violation exposes Boeing to potential U.S. prosecution, leading to concerns among investors and causing a decline in share value. On the other hand, Nio’s shares advanced by 3.3% after JPMorgan upgraded the Chinese electric vehicle maker to neutral from underweight. The bank noted that Nio could benefit from Chinese government stimulus policy and its latest battery as a service (BaaS) strategy, which could potentially drive sales.
Dell, the technology company, saw a rise of about 2% after Morgan Stanley raised its price target on the stock. The bank highlighted Dell’s gaining momentum with enterprise clients, particularly in AI server demand, as a positive factor for the company’s future growth. However, SunPower, a solar stock, dropped by 22.3% after a significant surge in the prior session. The White House’s announcement of increased tariffs on certain solar products from China initially boosted SunPower’s shares, but a downgrade from Wolfe Research to underperform from peer perform attributed the decline to the company being the “most extreme example of the meme stock resurgence.”
In summary, the day’s pre-market headlines included movements in shares of AMC Entertainment, GameStop, Boeing, Nio, Dell, and SunPower. The meme stock craze lost momentum, causing AMC and GameStop shares to fall, while Boeing faced potential prosecution for violating a settlement related to its 737 Max crashes. On the other hand, Nio and Dell saw favorable movements in their share prices, with Nio benefiting from upgrades and Dell gaining momentum with enterprise clients. SunPower, despite a surge and subsequent drop, was highlighted as an extreme example of meme stock resurgence within clean technology names. These developments reflect the varying influences on stock prices in the current market environment.
