On Wednesday, US retail group stocks plummeted across the intraday market and trading was suspended several times. Although the decline narrowed markedly at the close, Game Station still plummeted 18.9%, AMC Cinemas closed down 20%, Koss closed down 19.2%, and Blackberry closed down 6.9%. According to news on Wednesday the same day, AMC disclosed in a document that it will issue 23.3 million shares in exchange for notes due in 2026, with a principal amount of US$164 million.
On Wednesday, although the US stock market surged, boosted by the US CPI, and the S&P 500 index and NASDAQ 100 reached record intraday highs, retail group stocks, which had enjoyed tremendous gains in the first two trading days of this week, fell sharply across the board, forcing the market to stop.
Closing on Tuesday, up about 60%$GameStop (GME.US)$It fell 17.3% at the opening. It had fallen by about 35.4% in early trading, and closed up 32% on Tuesday$AMC Entertainment (AMC.US)$It fell 31.2% in early trading and closed up about 60% on Tuesday$SunPower (SPWR.US)$The intraday decline was 31.4%, and closed up nearly 41% on Tuesday$Koss Corp (KOSS.US)$It had a 31.5% drop in early trading and closed up nearly 12% on Tuesday$BlackBerry (BB.US)$It fell more than 9% in early trading. Also, benefiting from the sharp rise in retail group stocks, the US stock Tieba forum$Reddit (RDDT.US)$It fell more than 9% in early trading.
Among the retail group concept stocks mentioned above, a number of stocks were suspended several times in the US stock market on Wednesday due to huge declines. Although the decline narrowed significantly at the close, GameStop still plummeted 18.9%, AMC Cinemas closed down 20%, Koss closed 19.2%, Blackberry closed down 6.9%, and SunPower's closing point was close to daily low, closing 29%.
After a sharp drop on Wednesday, GME, AMC, etc. gave back about half of the “results” of the gains of the past two trading days.
In recent trading days, the trading volume of retail group shares has risen markedly, but the trading volume on Wednesday was clearly not as good as the previous two days, showing a shrinking trend.
According to news on Wednesday the same day, AMC disclosed in a document that it will issue 23.3 million shares in exchange for notes due in 2026, with a principal amount of US$164 million. Affected by this, the increase in the price of AMC cinema junk bonds has increased. The company's 10% junk bonds due in June 2026 once rose 1.5 cents to 87 cents, and 7.5% of garbage bonds due in February 2029 also rose 3.25 cents to 78.25 cents.
The analysis points out that unlike AMC, GME did not take advantage of this sharp rise in stock prices to issue shares. Obviously, before this round of gains, GME did not prepare so-called “at-the-market filing” (at-the-market filing); otherwise, it could have issued new shares without additional filing procedures.
What needs to be clarified is that GME is expected to release quarterly earnings reports soon, and it may have decided not or will not be able to expedite the information disclosure process that the US Securities and Exchange Commission (SEC) may require to sell new shares.
The reason for the sharp rise in retail group stocks in this round is the return of retail leader Keith Gill, who set off such a stock frenzy in 2021 and then disappeared. On May 13, local time, Keith Gill (screen name Roaring Kitty/DeepFuckingValue or DFV) posted a meme image on X. The picture shows a person leaning forward and getting serious when playing games. This tweet, which is suspected to be sounding the horn of battle once again, was viewed more than 18 million times on X. He then released a few more movie clips, all of which revolved around the character's return. Previously, his last tweet was in June 2021, and the content was a video of a cat sleeping.
Editor/Somer