GameStop stock surges over 100% as meme-stock market makes a strong comeback

GameStop (GME) stock experienced a massive surge in premarket trading on Tuesday, rising as much as 118%. This surge comes on the heels of a rally on Monday that saw the video game retailer’s shares jump 74%. The resurgence of Keith Gill, also known as “Roaring Kitty,” who initially sparked the meme stock rally in 2021 with his bullish case on GameStop, has once again captured the attention of investors.

Prior to Monday’s rally, GameStop shares had been relatively flat for the year but had seen a 60% increase in the past month. With the recent gains, GameStop stock is now up over 180% in the last month alone. The momentum in GameStop also spilled over to other heavily-shorted stocks, with AMC seeing an 80% increase on Monday and another 120% jump in premarket trading on Tuesday.

Short sellers have been feeling the pressure, with GameStop shorts reportedly down over $1.3 billion in losses for the month of May following the recent rally. Despite the significant losses, short interest in GameStop remains high, with 24% of the float sold short as of Monday.

The trading frenzy has drawn comparisons to the meme stock rally of 2021, with some analysts cautioning that short sellers may be forced to close out their positions to avoid further losses. The volatile trading action in GameStop and other meme stocks is a reminder of the power of retail traders in the market and the potential for rapid and unpredictable price movements.