As the meme stock craze roars back after a temporary lull, Reddit favorites AMC Entertainment (NYSE:AMC) and Nokia (NYSE:NOK) are making big ripples in the stock market. Thanks to the Reddit-fueled hype and the ease of stock trading, these two names have gained significantly. But while their rally is reminiscent of GameStops’ massive gains in late January, these two stocks are expected to be extremely volatile. Keeping this in mind, let’s find out which of these stocks is a better buy now.AMC Entertainment Holdings, Inc. (AMC) and Nokia Corporation (NOK) have been riding the meme stock wave. Along with stocks such as BlackBerry Limited (NYSE:BB), GameStop Corporation (NYSE:GME) and others, these two meme stocks have witnessed double-digit price increases over the past few weeks. While the frenzy began earlier this year with GME’s more than 1,600% gains, AMC has become the latest darling of retail traders, with its shares soaring more than 390% over the past month.
However, meme stocks, which have gone viral on social media irrespective of their financials, are extremely volatile. As such, the huge price gains could be short lived. In fact, according to Matt Maley, chief market strategist at Miller Taba, there could be an ugly ending to the AMC mania. NOK, in contrast, has been witnessing increasing positive cash flow and rising demand for its next-generation connectivity. Since the company is well on track to achieve profitable growth, the momentum in the stock might continue.
While AMC has gained 855.5% year-to-date, NOK has returned 32.1% over the same period. In terms of their past month’s performance, AMC is the clear winner with 391.5% gains versus NOK’s 10.1% returns. But which of these stocks is a better pick now? Let’s find out.