Investing

Midday Meme Stock Report for 7/23: AMC, Clover Health, DiDi, Nio

Probably the hottest stock discussion on r/WallStreetBets Friday was the big jump in Snap Inc. (NYSE: SNAP) after Thursday’s well-received second-quarter earnings report. Maybe the stock could be named an honorary meme stock — as of noon Friday, the stock has traded more than four times its daily average volume of 20 million shares traded.

DiDi Global Inc. (NYSE: DIDI) was getting beaten up again Friday, following Thursday’s report that Chinese regulators are going to slap the company with what may be unprecedented penalties related to its initial public offering on June 30. The most extreme step would be forcing DiDi to delist its New York Stock Exchange shares. More likely is a serious fine, somewhere in the neighborhood of the $2.8 billion fine levied against Alibaba following an antitrust investigation. Remember, the government squashed plans for an IPO of Ant Financial.

Clover Health Investments Corp. (NASDAQ: CLOV) on Thursday announced it was buying back all the warrants the company issued at the time of its IPO. The redemption price on the warrants is $0.10, and the company is allowed to redeem them because the stock has traded below $10 a share for 20 of the past 30 trading sessions and the share price is below the reference value of $18. The redemption applies to both public and private warrants. Warrant holders have until close of business on August 23 to exercise their option to buy the warrants at $11.50 per share or receive a cashless payout of 0.361 shares per warrant. There are not likely to be many cash purchases, and getting the equivalent of a one-for-three reverse stock split is not terribly appealing either.

AMC Entertainment Holdings Inc. (NYSE: AMC) cannot seem to stop the drop in its share price. Since the beginning of June, the stock has declined about 40%, the largest chunk of which has fallen off the bandwagon in July. AMC’s true believers are fighting back by raising funds to pay for banner-hauling airplanes to get out the “Buy AMC” message.

Chinese electric vehicle maker Nio Inc. (NYSE: NIO) is likely falling due to the same concerns felt by DiDi Global investors. Even if Nio has done all the right things, that is no guarantee that its Chinese regulators won’t move the goalposts. The one thing in Nio’s favor is that it manufactures cars, and the Chinese government is less likely to force a lot of its citizens out of work.

AMC traded down about 4%, at $35.73 in a 52-week range of $1.91 to $72.62. The average daily trading volume is more than 172 million shares, and nearly 60 million had changed hands on last look.

Clover Health shares traded down nearly 6% to $8.11, in a 52-week range of $6.31 to $28.85. The average daily trading volume is around 55 million, and about 18 million shares had traded thus far on Friday.

DiDi Global traded down about 21%, at $8.05 in a post-IPO range of $8.05 to $18.01. The low was posted earlier Friday. The average daily trading volume is nearly 94 million, and almost 87 million shares had traded in the first half of Friday.

Nio’s shares were down about 4.8%, at $43.85 in a 52-week range of $10.91 to $66.99. The average daily trading volume is around 67 million, and nearly 38 million shares had changed hands.