This meme stock surge is unlikely to last, according to strategist

One strategist warns that the resurgence of meme stocks is not likely to last, as the companies underlying the move are still on shaky fundamental ground.

It is August, and people are focused on a lot of things, said Monica DiCenso, managing director and head of the Global Investment Opportunities Group at JP Morgan Private Bank, on the Yahoo Finance Live video above about the latest meme stock move. I think it would be good for people to look at fundamentals after the volatility we've seen. I struggle with some of these names to state why they should be up that much. The meme stock trade went back in force this month - though some told Yahoo Finance on Twitter that it never went away in the first place.

AMC, Bed Bath Beyond, and GameStop were among the top 10 actively traded stocks on Monday by Fidelity. Shares of AMC were the second most active on the platform behind the volatile Tesla.

After a nearly 40% gain on Monday, Bed Bath Beyond stock went up 10% in premarket trading on Tuesday. The shares fell 18% as of 2: 30 p.m. On Tuesday afternoon, Baird reduced its rating on the stock to underperform citing the frenzied move in the stock price and, to DiCenso's point, weak fundamentals.

In August, Bed Bath Beyond shares had exploded by 88% heading into Tuesday's session. The move in Bed Bath Beyond has seemed to come out of nowhere, despite speculation that the struggling retailer is nearing a badly needed cash raise.

A similar no-news push higher affected GameStop stock as well. After a 8.5% gain on Monday, GameStop shares fell by nearly 7% as of Tuesday afternoon.

Following an 8% increase on Monday, the stock fell 6% as for cinema chain AMC Entertainment.

AMC shares had a positive catalyst to kick off the week, unlike its peers in meme land.

AMC CEO Adam Aron, affectionately known as the chief ape in the Reddit community, told Yahoo Finance Live in an exclusive interview that the company would begin debt reduction soon. Aron said we are going to get on a path relatively soon to deleverage. I think you can say relatively soon, meaning starting this year and certainly in significant numbers in 2023. New data shows investor appetite for the names that were popular among retail traders at the height of the COVID -- 19 epidemic, regardless of the reason for the meme stock trading revival.

The Roundhill Solactive Meme Stock Index, which tracks popular meme stocks such as Robinhood, Peloton, and AMC, is up a cool 15% in August.

As Ihor Dusaniwsky, managing director at S 3 Partners, said: "Wall Street has gone to the Hamptons, but meme stocks are back with a vengeance." You can follow Sozzi on Twitter and LinkedIn.