Meme Stock Frenzy Reignites As Roaring Kitty Returns, GameStop And AMC Surge

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.

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.

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.

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.