GameStop and AMC shares led another meme stock rally early Tuesday. Shares surged on Monday after Keith Gill, who ignited the meme stock frenzy during the pandemic, returned to social media after a three-year hiatus. The New York Stock Exchange temporarily halted trading on GameStop (GME) shares multiple times early Monday as prices soared.
Gill, known as Roaring Kitty, posted on social media platform X Sunday night for the first time since June 2021, sharing a meme suggesting he is “getting serious.”
Gill gained fame in 2020 and 2021 as a key figure in the GameStop (GME) short squeeze. He later testified before the House Financial Services Committee in February 2021 regarding a market manipulation investigation.
Retail investors celebrated his return with comments like “he’s back,” “game on,” and “just in time for the memecoin supercycle,” referring to rising prices of smaller cryptocurrencies.
GameStop (GME) stock surged another 125% in premarket trading on Tuesday, following a 74% jump on Monday after Keith Gill’s social media post. The New York Stock Exchange briefly paused trading on GME multiple times on Monday due to high volatility.
As of Monday’s close, GameStop shares have climbed 73.7% in 2024, a stark contrast to their flat performance up until Friday when they closed at $17.46.
Previous short squeeze of AMC & GME
AMC Entertainment (AMC), a theater chain, saw its stock skyrocket 101% Tuesday morning, building on Monday’s 78.4% rally. Despite these gains, AMC shares closed Monday down 15.2% for the year, having previously hovered near their record low of $2.38 from April.
In 2021, GME stock soared 688% as individual investors organized a buying frenzy on online message boards, catching short sellers off guard. These short sellers, betting on the stock’s decline, faced potentially unlimited losses unless they bought shares, which further drove up the price. This innovative and controversial tactic led to a dramatic increase in GME stock.
Ironically, GME’s dramatic rise was triggered by its prior significant fall, attracting a large number of investors betting on further declines. By late 2019, short sellers had heavily controlled GME shares, setting the stage for the massive short-squeeze rally.
This entire short squeeze saga is depicted in the movie “Dumb Money.”
