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GameStop (GME) and AMC Theaters Skyrocket in 2021-Style Revival
AMC Entertainment (AMC) e GameStop (GME) shares are rising in the trading session on Monday, May 13. GME and AMC stocks boasted gains of 51% and 21%, respectively. Therefore, investors are curious about the sudden rise in prices and are speculating on the revival of these meme stocks.
Why are GameStop and AMC stocks rising?
Speculations suggest that the recent successful IPO of Reddit may have fueled the rally, particularly by boosting GameStop shares. However, there is another important factor that could drive the strong movement of both stocks on Monday.
On X, a tweet from the account “The Roaring Kitty” emerged as a potential catalyst for the pre-market surge. Keith Gill, known as Roaring Kitty, has been a major investor in GameStop (GME) throughout 2020, arguing his undervaluation on Reddit’s WallStreetBets forum.
The meme stock frenzy in 2020 and 2021 pushed both GME and AMC to unprecedented highs. Additionally, retail traders on the WallStreetBets subreddit, inspired by Gill’s confidence and energized by social media, flocked to GME, triggering a buying frenzy.
This intense activity crushed hedge funds that had been heavily shorting the shares, causing a sharp rise in the price of GME. AMC, another heavily shorted stock, saw a similar rise in price due to retail investor enthusiasm.
Over the past month, GameStop shares have posted significant gains, rising more than 50%. Additionally, the return of the Roaring Kitty account, with its first tweet in nearly three years on Sunday night, coincided with the resurgence of both memes. This also prompts speculation about a potential return of meme stock mania.
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GME and AMC stock prices today
At the time of writing, the GME stock On Monday, soon after the market opened, it skyrocketed 51.09% to $26.38. Therefore, the stock opened with a bullish gap with $8.92 added to the value of GameStop stock. However, the stock fell 3.05% to close at $17.46 on Friday, May 10. Previously, during the meme stock rush of 2021, the GME stock price rose to a high of $86.88.
On the other hand, AMC stock also showed a phenomenal performance with a gain of 21.31%, trading at $3.53. This suggests a massive rebound from Friday’s close of $2.91, when AMC’s share price tumbled 4.59%. However, AMC’s stock price is still down 95% from its all-time high of as much as $72.62.
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