Stocks rose Monday as the anxiety over volatile retail trading is no longer a concern with day traders appearing to turn their attention to precious metals like silver.
TheStreet’s Katherine Ross discussed breaking news in the stock market. Cramer spoke about AMC’s stock rise, Robinhood and markets on Monday.
AMC Entertainment: Buy Or Sell?
Cramer said AMC is an opening trade company. “We know they raised $9 million just last week. It’s got a lot of debt, maybe as much as $11 billion, a lot of it is high coupon debt, it costs a lot of money. That’s because of Covid. The more the stock goes up the more stock there is to offer, they offered $300 million last week.”
Robinhood, the online trading app, has reduced the number of companies on which it had imposed trading limits to eight from 50. Opening new positions in GameStop (GME) – Get Report, AMC Entertainment, BlackBerry (BB) – Get Report among others will be limited, Robinhood said on its website, on Monday.
Cramer said Robinhood remains one of the most downloaded names at the app store. “I want Robinhood to make free and fair markets which is up to the regulators. Robinhood is capital constrained but I’m not sure how much they were able to raise. Some people have been leaving the app to go join Square. With this amount of market volatility some users might want to keep a second account.”
Markets on Monday
Cramer said there is a regulatory risk in the markets due to various annuities involved with $70 billion in shorted stocks. “We’re oversold now. People are starting to realize that the quarters are better. People are starting to put the GameStops, the WallStreetBets, Reddit, and problems with Robinhood in context. And that’s what matters in order to make good decisions.”