GME Stock and AMC Revive as Leading Figures in Memestock Resurgence.
On Monday, GameStop's stock and AMC shares surged following Keith Gill's reappearance on social media after a three-year absence. The New York Stock Exchange halted trading on GME stock several times in the early hours as its value skyrocketed.
On Sunday night, Keith Gill, also known as Roaring Kitty on social media, made his first post on platform X since June 2021. The post featured a meme suggesting he's "getting serious." Gill gained notoriety in 2020 and 2021 for his role 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 an investigation into potential market manipulation.
Retail investors celebrated with comments like "he's back," and "game on," or "just in time for the memecoin supercycle," in a reference to rising prices for smaller cryptocurrencies.
GME stock vaulted about 74.5% Monday following the post. The NYSE briefly paused trading on GME stock multiple times within the first hour or so of trade Monday due to volatility.
GameStop shares were essentially flat on the year through Friday, closing at 17.46.
Theater chain AMC Entertainment (AMC) rallied 78.4% Monday. AMC stock has dived nearly 53% in 2024 through Friday. Shares are not too far above their record low of 2.38 from April.
Previous Short Squeeze :
In 2021, GME stock witnessed a staggering 688% surge as individual investors orchestrated a collective buying frenzy through online message boards, catching short sellers off guard. These short sellers, who were betting on the stock's decline, found themselves facing potential unlimited losses unless they purchased the stock, which further amplified the gains.
This unconventional approach to boosting GME stock sparked both innovation and controversy. Ironically, the stock's ascent was fueled by its significant prior decline, with a substantial portion of investors anticipating further drops.
Entering 2021, GME shares had already experienced a 33% decrease in value over the previous five years. Short sellers had amassed control over GME stock shares by late 2019, setting the stage for a monumental short squeeze rally in an environment ripe for such a phenomenon.
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