The stock market experienced a blast from the past this week as the meme stock frenzy of 2021 made a comeback following the return of Keith Gill, better known as Roaring Kitty. Gill’s first post on social media in nearly four years sent shares of GameStop and AMC Entertainment soaring as amateur traders piled into the stocks once again.
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
GameStop shares jumped as much as 113% on Tuesday before closing up 60%, while AMC shares rose 32%. The sudden surge in trading activity triggered multiple trading halts for both stocks throughout the day.
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
Gill, a former chartered financial analyst, gained a cult following in 2021 by promoting GameStop shares on YouTube and Reddit under the usernames Roaring Kitty and “deepf—ingvalue.” His bullish stance on the video game retailer helped fuel a short squeeze that resulted in billions of dollars in losses for hedge funds that had bet against the stock.
While the current meme stock rally has added billions in market value to GameStop and AMC, it still pales in comparison to the 2021 frenzy. GameStop call option volumes on Monday were just a fraction of the peak levels seen during the height of the meme stock craze.
AMC took advantage of the renewed interest by completing a $250 million share offering. 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
