GameStop’s (NYSE:GME) stock surged over 60% on Tuesday, building on a 74% increase from Monday, marking a dramatic resurgence in the meme stock phenomenon. The video game retailer’s shares soared as much as 110% during Monday’s session, prompting multiple trading halts due to volatility. This rally reignited with the reappearance of Keith Gill, aka “Roaring Kitty,” whose bullish stance on GameStop fueled the original meme stock craze in 2021.
Prior to this week, GameStop’s shares were relatively stable year-to-date, but have now escalated over 180% in the past month, excluding Tuesday’s premarket gains. Alongside GameStop, AMC Entertainment (NYSE:AMC) also experienced significant trading activity, with its stock climbing over 100% on Tuesday before retracting slightly. AMC further announced the issuance of approximately 72.5 million new shares, raising about $250 million.
Other stocks witnessing notable premarket rises included SunPower (NASDAQ:SPWR) with a 90% increase, Beyond Meat (NASDAQ:BYND) up 25%, and The Children’s Place (NASDAQ:PLCE), which rose about 6%.
Nicholas Colas of DataTrek Research described the trading frenzy as reminiscent of early 2021, which saw GameStop shares skyrocket by 1,500% in January before declining sharply. Despite the past turbulence, short interest in GameStop remains high, with S3 Partners reporting 24% of the float sold short as of Monday.
The current market dynamics underscore the ongoing battle between short sellers and retail investors, a narrative that captivated many during the pandemic lockdowns and continues to influence the market today.
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