Shares of GameStop and AMC surged around 40% in premarket trading on Tuesday, continuing the momentum of the meme stock craze. The jump came after “Roaring Kitty,” also known as Keith Gill, posted on social media for the first time in three years. Shares of GameStop were up 40% and AMC rose over 38% at 4:50 a.m. E.T. This followed significant gains for both stocks in the previous trading session, with GameStop climbing 74.4% and AMC soaring 78.4%.
The recent market moves were spurred by Roaring Kitty’s return to social media platform X, where he posted a picture of a video gamer sitting forward on their chair — a meme indicating seriousness. This was his first post on the platform since 2021 and has been viewed more than 23 million times. Gill, a former marketer for Massachusetts Mutual Life Insurance, became known as DeepF——Value on Reddit, attracting a group of day traders who supported each other and invested in GameStop and GameStop call options between 2020 and 2021.
The meme stock craze, driven by retail investors banding together on social media platforms like Reddit, has created volatile trading conditions for companies like GameStop and AMC. These companies, which have struggled in recent years due to changing consumer preferences and the impact of the pandemic, have seen their stocks soaring and plummeting based on social media buzz and retail investor sentiment. The coordinated efforts of retail investors have disrupted traditional market dynamics and caught the attention of institutional investors and regulators.
The role of Roaring Kitty, along with other influential figures in the meme stock movement, has drawn attention to the power of social media in influencing stock prices. Retail investors, often trading on platforms like Robinhood, have been able to drive up the prices of heavily shorted stocks like GameStop and AMC, leading to significant losses for short sellers and hedge funds. The frenzied trading activity and market volatility have raised questions about market manipulation and the role of social media in driving stock prices.
While the meme stock movement has created wealth for some retail investors who invested early and sold at the right time, it has also resulted in significant losses for others caught in the volatility of the market. Regulators have been monitoring the situation closely, with some calling for increased oversight and regulation of social media-driven trading activity. The future of meme stocks like GameStop and AMC remains uncertain, as retail investors continue to band together to push the prices of these companies higher.
In conclusion, the recent surge in GameStop and AMC stock prices, fueled by the return of Roaring Kitty to social media, highlights the ongoing influence of retail investors in the market. The meme stock craze, driven by social media buzz and coordinated trading efforts, has disrupted traditional market dynamics and raised questions about market manipulation and regulation. While some investors have profited from the movement, others have faced significant losses. The future of meme stocks remains uncertain as regulators and market participants navigate the complexities of this new trading environment.
