After rising by over 135%, Vistra (VST) showed signs of slowing its rally. The S&P 500 (SPY) added VST stock, replacing Pioneer Natural Resources. In Q1, the firm posted revenue of $3.05 billion, down by 31.0% Y/Y. It earned $18 million.
Traders may bet on VST stock rallying back to around $93.50 instead of falling below $90.00.
Struggling drug store firm Walgreens Boots (WBA) broke out of a yearlong slump. The stock added 5.41% on Monday. The media reported that it contacted potential buyers. Investors compare the new CEO to GE’s (GE) Larry Culp. However, Culp leveraged his connections to fix GE’s business. Walgreens needs to cut costs, reduce debt, and increase return on investments.
Meme traders from 2021 may hope that GameStop (GME) will return to old highs. Unless the short-squeezing momentum continues indefinitely, this is unlikely.
GameStop’s core business is disconnected with the changing market conditions. Gamers buy software digitally, while the console market is five years old. Without a Nintendo (NTDOY) Switch, Sony (SONY) PS5, and Microsoft (MSFT) refresh, consumers have no reason to shop at GameStop.
Similarly, AMC Entertainment (AMC) posted a $0.62 EPS loss. Its 78.35% rise on Monday could continue. But once the momentum ends, look out.
One REIT joined the meme-inspired trade: Medical Properties (MPW). Watch out for profit takers to soon sell MPW stock.
