The stock market witnessed a resurgence of the meme stock phenomenon this week as Keith Gill aka Roaring Kitty returned to social media after a nearly four-year absence. Gill’s first post since 2021 sparked a buying frenzy in shares of GameStop the embattled video game retailer at the center of the original meme stock craze.
Want to know the story of $GME and its recent rise? @gmecoinsol
GME is a memecoin on the Solana network, based on the popular GameStop meme stock, which is where it gets its ticker – $GME.
GME draws its popularity from a legendary financial story involving GameStop, where a… pic.twitter.com/wSnniSznxS
— Bitrue (@BitrueOfficial) May 15, 2024
GameStop shares soared as much as 113% on Tuesday before closing up 60% while AMC Entertainment another meme stock favorite saw its shares jump 32%. The sudden surge in trading activity triggered multiple trading halts for both stocks throughout the day.
The meme stock trading frenzy showed divergence on its third day, with GameStop and AMC seeing smaller gains in pre-trading, while Koss shares fell. This shift indicates a potential shift in momentum in the market.
— Money Minds (@moneymindsapp) May 15, 2024
Gill a former investment adviser rose to internet stardom in 2021 by rallying amateur traders on Reddit to buy GameStop shares in an effort to squeeze hedge funds that had heavily shorted the stock. His return to the limelight this week with a simple meme post reignited the enthusiasm of retail investors.
Despite the impressive gains, the current meme stock rally falls short of the 2021 frenzy in terms of trading volumes. GameStop call option volumes on Monday were just 10% of the peak levels seen during the height of the meme stock craze three years ago.
will GameStop stop?
— hope X (@LianXhope) May 15, 2024
AMC capitalized on the renewed interest by completing a previously announced share offering raising about $250 million. The movie theater chain’s bonds also saw significant gains with its 10% bond due 2026 rising as much as 11.25 cents on the dollar.
You never know when @AMCTheatres and @GameStop will be in action but the one thing #investors do know will happen in the #stockmarket is when a #dividend will be paid which is why you should deploy capture-the-dividend tactics with companies such as @Bristol_Myers @DukeEnergy…
— jonathan yates (@politicsports13) May 15, 2024
