Meme stocks such as AMC and GameStop are changing the way some investors perceive parts of the market.
- The Russell 2000 value index, developed to track shares of small companies that are assessed as bargains relative to the overall market, is up 21% this year. Meanwhile, the Russell 2000 growth index has increased only 5%.
- The Russell 2000 value index’s gains this year have been attributed by some meme stocks such as AMC Entertainment Holdings Inc., the stock’s rally of over 2,000% this year helped the Russell 2000 index to outperform the Russell 2000 growth index.
- Many investors have embraced value stocks this year, snapping up shares of cyclical companies and ones in corners of the market benefiting from a booming economy.
The meme companies have had a larger effect in some indexes. After significant gains of GameStop Corp, the stock was dropped from the Russell 2000 value index in June, still remains the second-biggest contributor to the index this year.
AMC up +3.38%, GME down -4.40%Source: The Wall Street Journal.