2 Meme Stocks That Beat Ethereum in 2021 Investors' interest and growing cryptocurrency uptake helped Ethereum surge 418% in 2021. However, meme stocks AMC Entertainment (AMC) and GameStop (GME) beat Ethereum's returns, soaring more than 650% in price...
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Investors' interest and growing cryptocurrency uptake helped Ethereum surge 418% in 2021. However, meme stocks AMC Entertainment (AMC) and GameStop (GME) beat Ethereum's returns, soaring more than 650% in price in 2021. So, let's take a closer look at the two meme stocks that outperformed Ethereum in 2021.
Ethereum or Ether is the world's second-largest virtual currency by market capitalization. It facilitates operations with the help of the Ethereum blockchain. Investors' interest surrounding the cryptocurrency helped Ethereum soar 418% in 2021.
Meanwhile, the meme stock frenzy took the world by storm in 2021. The famous Reddit forum WallStreetBets' (WSB) picks AMC Entertainment Holdings, Inc. (AMC) and GameStop Corp. (GME) witnessed a short squeeze as their prices skyrocketed. The rise in their prices perfectly fit the Redditors' motto of "to the moon."
The two meme stocks were the darlings of retail investors as they soared more than 650% in 2021, outperforming Ethereum. So, let's look at these stocks.
AMC Entertainment Holdings, Inc. (AMC)
Theatrical exhibitor, AMC in Leawood, Kans., owns and operates theaters worldwide. As of Nov.9, 2021, the company operated 950 theaters and 10,500 screens across the United States and internationally.
On Nov.4, 2021, AMC announced plans to sell its famous AMC Theaters Perfectly Popcorn through four new platforms. The company plans to sell its AMC Theaters Perfectly Popcorn through kiosks, counters, and stores at select retail locations around the country, and deliver freshly made popcorn to the doorstep. This should help it grab a piece of the growing multi-billion-dollar popcorn market.
AMC's non-GAAP total revenues for the third quarter, ended Sept.30, 2021, increased 532.3% year-over-year to $755.60 million. The company's net loss came in at $224.20 million, versus $905.80 million in the year-ago period. Also, its adjusted loss per share was $0.44 compared to $5.70 in the prior year's quarter.
Analysts expect AMC's EPS and revenue for the quarter ending Dec. 31, 2021, to increase 96.1% and 565.3%, respectively, year-over-year to $0.24 and $1.08 billion. The stock gained 1,183% in price last year.
GameStop Corp. (GME)
GME provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. It sells new and used video game platforms and software, accessories, and in-game digital currency. GME is based in Grapevine, Tex.
On Nov. 4, 2021, GME announced that it had agreed with a syndicate of banks on a new $500 million global asset-based credit facility to improve its liquidity. This is likely to help the company in its efforts to transition from a brick-and-mortar retailer to e-commerce.
GME's net sales for its fiscal third quarter, ended Oct. 30, 2021, increased 29% year-over-year to $1.29 billion. The company's gross profit came in at $318.60 million, representing a 15.3% increase. Also, its merchandise inventories increased 32.5% year-over-year to $1.14 billion.
For its fiscal 2023, GME's EPS is expected to increase 52.7% year-over-year to $0.80. Its revenues are expected to increase 17.3% year-over-year to $5.97 billion in fiscal 2022. The stock gained 687.6% in price in 2021.
AMC shares were trading at $22.74 per share on Tuesday morning, down $0.04 (-0.18%). Year-to-date, AMC has declined -16.40%, versus a -2.63% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master's degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.