'Meme stocks' return with increases of up to 100% in one day

The so-called meme stocks, with Gamestop as the highest representative, soar again with the return of one of the investors who promoted the movement against the bears at the beginning of 2021 and made Wall Street tremble.

Oliver Thansan
Oliver Thansan
14 May 2024 Tuesday 04:26
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'Meme stocks' return with increases of up to 100% in one day

The so-called meme stocks, with Gamestop as the highest representative, soar again with the return of one of the investors who promoted the movement against the bears at the beginning of 2021 and made Wall Street tremble. As an example, the titles of the video game store chain soared by 100% in this Monday's session and today they rise more than 70%. She is not the only one with unusual quotes.

It all comes from a simple tweet from Keith Gill, known as Roaring Kitty, a leading retail investor on the Reddit social network and its Wallstreetbets forum. In 2021, thousands of retailers coordinated from these portals to take down the bearish funds that make money from the fall in company shares. Gill was one of the key pieces.

After three years away from the internet, this Monday he published a meme used in the video game player community when things get serious. This was interpreted by the community as a resurgence of attacks on bears, reinvesting in meme stocks to seek a quick profit. Gill has then continued to publish one video after another with motivational or challenging slogans.

Gamestop closed on Monday with advances of 74%, which continues today. Another of the meme stock favorites, the AMC movie theater chain, saw its shares catapult 78%. Today even more, 97% after opening. The headphone maker Koss rose 37% on Monday and 45% this Tuesday, and the former telephone leader BlackBerry 7% and 18% respectively. These are always companies that have problems or have been relegated in the markets, at the mercy of the attacks of the bears. Until online retailers start buying their shares... On this occasion, names such as the car company Lucid, the space travel company Virgin Galactic or the energy company Sunpower are added, which soars 60%.

Will what was seen a few years ago be repeated? In their particular war, in 2021 retailers took the lead, causing increases of 2,000% in Gamestop or AMC titles, ruining the bet of the bears. It is estimated that the funds lost around $5 billion - €4.6 billion - due to these movements, according to an estimate by the analysis firm S3 Partners.

It must be taken into account that whoever invested at the peak of the Gamestop frenzy, when its shares touched $81, if they have maintained them until today, they have lost 35% of the value. The same in AMC: from the maximum price in 2021 to the current one there is a drop of 96%.

The madness reaches beyond the bags. Today on the market there is also the roaring kitty cryptocurrency or one with the Gamestop logo, which out of nowhere have been boosted by more than 1,000%.