Nearly every day, Nvidia (NVDA) tops the most actively traded stock list. This exaggerates the trading volume’s dollar value. It hides underlying weaknesses in weak companies. Besides AI, the meme trading frenzy is worrisome. It exemplifies the failure of BlackBerry (BB) to capitalize on its stock spiking to around $4.00 last month.
BB shares lost 12.69% last week on no news.
AMC Entertainment (AMC) raised $250 million. The stock had spiked to $12 on May 14, 2024. AMD stock closed at $4.99. GameStop (GME) raised an impressive $2 billion. Scheduled to hold its annual meeting last week, the firm delayed it due to technical difficulties.
Tesla (TSLA) stock is in a holding pattern at $175 - $178. The electric vehicle demand destruction continues. Tesla will survive while others burn too much cash flow. This increases risks for Rivian (RIVN) and Lucid (LCID). Markets are dumping shares of Ford (F) and Stellantis (STLA). They expect the high price tag for their vehicles will lead to higher inventories. General Motors (GM) has yet to break down on stock markets. GM benefits from its P/E of below six times.
Entertainment stocks are among the most actively traded stocks. Be wary of Sirius XM Holdings (SIRI). The stock is just 6.5% above its 52-week low.
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