GME and AMC Stocks Regain Momentum as Meme Rally Resurge
GME and AMC Stocks Regain Momentum as Meme Rally Resurge
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GameStop and AMC stocks surged on Monday following Keith Gill's return to social media after a three-year absence. Gill, known for igniting the meme stock rally during the pandemic, caused the New York Stock Exchange to temporarily halt trading on GME stock multiple times as shares sharply climbed.
Gill, recognized by his online moniker Roaring Kitty, returned to social media platform X on Sunday night for the first time since June 2021. His post featured a meme suggesting a return to a serious demeanor.
Gill gained notoriety in 2020 and 2021 as a pivotal figure in the GameStop (GME) short squeeze. The former financial broker and analyst was later summoned to testify before the House Financial Services Committee in February 2021 regarding a probe into potential market manipulation.
Retail investors expressed jubilation with comments such as "he's back," "game on," or "just in time for the memecoin supercycle," alluding to the surge in prices of smaller cryptocurrencies.
On Monday, GME stock surged approximately 74.5% following the post. The New York Stock Exchange temporarily halted trading on GME stock several times during the initial hour of trading due to heightened volatility.
Through Friday, GameStop shares remained largely unchanged for the year, closing at 17.46.
On Monday, AMC Entertainment (AMC) experienced a surge of 78.4%. However, AMC stock has seen a decline of nearly 53% in 2024 up to Friday, with shares hovering not far above their record low of 2.38 from April.
In the previous short squeeze, GME stock skyrocketed by 688% in 2021. Retail investors coordinated a purchasing frenzy through online message boards, catching short sellers off guard. These short positions faced significant losses unless they covered their positions, amplifying the stock's gains.
The unconventional and controversial tactic led to a remarkable rise in GME stock value.
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Ironically, GME stock surged due to its significant decline, with a considerable portion of investors anticipating further decreases.
At the outset of 2021, GME shares had dropped by a third over the preceding five years. Short sellers had amassed substantial control over GME stock shares by late 2019, setting the stage for a monumental short squeeze rally.
The entire narrative of the short squeeze episode was depicted in the film "Dumb Money."