The resurgence of meme stocks like GameStop and AMC Entertainment has once again captured the attention of retail investors, reminiscent of the frenzy that gripped Wall Street three years ago. This renewed interest comes after social media posts from the leading figure behind that rally, “Roaring Kitty”.
Keith Gill, popularly known as “Roaring Kitty”, recently shared cryptic posts on social media platform X, including a sketch of a man leaning forward in a chair, a popular meme among gamers indicating seriousness. Gill played a significant role in making the bull case for GameStop in 2021, attracting a flood of retail cash into the company.
GameStop has surged over 139% since Friday’s close, adding more than $9 billion to its market value, while AMC Entertainment has climbed over 130% following a two-day rally. Both stocks were the most traded by retail investors on Monday, according to J.P. Morgan.
In addition to GameStop and AMC, retail traders also pumped up other highly shorted stocks like SunPower Corp, Koss Corp, and Tupperware Brands, sending them soaring between 24% and 83%. The retail market order as a percentage of total market volume has also increased, indicating heightened retail investor activity.
Meme stocks refer to company shares boosted by retail investors using trading platforms and social media investment advice. This trend first gained prominence in 2021 during the COVID-19 lockdowns, when increased savings, policy stimulus, and low interest rates pushed more people into the stock market.
With U.S. interest rates at multi-decade highs and the S&P 500’s gains concentrated in a few megacap companies, fund managers are closely watching for further commentary from “Roaring Kitty” to gauge the future of meme stocks in this new market environment.