The excitement surrounding meme stocks has surged for the second day in a row, driven by the return of Keith Gill, famously known as Roaring Kitty. Stocks like GameStop and AMC, which gained fame during the 2021 Reddit-fueled trading frenzy, are once again soaring in premarket trading.
On Monday, Gill's reappearance sparked renewed interest in these heavily shorted stocks. GameStop, in particular, saw 187 million shares change hands, leading the charge among meme stocks. Despite the hype, there are doubts about the sustainability of these gains. GameStop's annual revenues are projected to decline for the third consecutive year, and the company has not posted a full year of profitability since the pandemic started.
Ryan Lewenza, a portfolio manager at Turner Investments, expressed caution. "Some people are going to make some money, but this is going to end in tears," he said, highlighting the risky nature of investing in these volatile stocks.
Home Depot Faces Continued Challenges
Home Depot reported its quarterly results on Tuesday, showing a sixth consecutive quarter of declining same-store sales. The home improvement giant, which thrived during the early pandemic as people undertook DIY projects, has struggled to maintain growth amid high inflation. Total sales, including new stores, fell by 2.3% to $36.4 billion. Despite the negative results, the stock is slightly up in premarket trading.
New Japanese Car Part Plant in Ontario
Asahi Kasei, a Japanese car parts manufacturer, is set to announce the construction of a new battery-related plant near Niagara, Ontario. The facility, located in Port Colborne, will be part of Honda’s electric vehicle supply chain. The $1.6 billion plant could be operational by this fall. Prime Minister Justin Trudeau and Ontario Premier Doug Ford will be present at the event announcing the details.
Rain Eases Wildfire Risk Near Fort McMurray
Rain is expected to reduce the wildfire risk near Fort McMurray, Alberta, providing relief to the area’s residents. On Monday, a large blaze threatened the community, prompting evacuation alerts. However, in British Columbia, the situation remains critical. Fort Nelson is under an evacuation order due to an out-of-control fire advancing quickly toward the town.
Canadian Wholesale Trade Declines
March saw a decline in Canadian wholesale trade, with sales dropping by 1.1% from February to just over $81 billion. The fall was led by a 7% decrease in vehicle sales as several manufacturing plants retooled assembly lines for new models. Despite this, the decline was less severe than the initially forecasted 1.3%.
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