Why Meme Stocks AMC, GameStop, and Tonix Soared Higher Today

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What happened

Meme stock investors had a satisfying Monday, with three of the biggest names in this rather loosely defined group – AMC Entertainment (NYSE: AMC), GameStop (NYSE: GME), and Tonix Pharma (NASDAQ: TNXP) – all convincingly beating the S&P 500 index gain.

The trio ended the day up 6.9%, 3.5% and 4.2% respectively.

Image source: Getty Images.

So what

Stock bulls were rampant on Monday, in large part because of the very happy news that the coronavirus vaccine developed by Pfizer and BioNTech has received full FDA approval.

Previously, the jab – now known as Comirnaty on our shores – had only obtained emergency use authorization, an important distinction.

Now what

The impact of vaccine approval on Tonix Pharmaceuticals is clear. The biotech company is developing its own vaccine for the coronavirus, and the FDA’s nod to Pfizer proves the regulator is eager to get shots through the pipeline and into human arms.

It also affects AMC and GameStop, but in a less direct way: some refractories could get vaccinated now that there is a vaccine that is fully approved by the FDA. This is potentially good news for places potentially filled with humanity, like AMC theaters.

The reasoning is similar for GameStop. Outside of hot console or game launch days, the company’s many physical locations are typically not crowded with people, but with higher inoculation rates and lower risk of infection, more people. are likely to visit stores.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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