Meme-stock traders have reignited the flame that propelled shares of GameStop Corp. and AMC Entertainment Holdings Inc. to record heights once again.
GameStop, the video-game retailer at the center of the meme-stock phenomenon, appreciated by 60% in stock price to gain as much as 113% earlier in the day.
Meanwhile, AMC, the struggling movie theater chain, saw its shares rise by 32%, triggering multiple trading halts throughout the trading session.
The abrupt and dramatic swings in both stocks indicated the resurgent fervor among retail investors.
This latest rally was sparked by the return of Keith Gill, famously known as “Roaring Kitty” on social media, who played a pivotal role in driving the meme-stock mania of 2021.
Gill’s reappearance online reignited enthusiasm among day traders on platforms like Reddit, reviving interest in GameStop and AMC.
Amid the fervent trading activity, AMC announced the successful completion of a previously announced at-the-market offering of shares, raising approximately $250 million in total.
The company sold 72.5 million shares at an average price of $3.45, bolstering its financial position amidst the stock surge.
Tuttle Capital Management CEO, Matthew Tuttle, commented on the developments, stating, “I think it shaped up pretty good for everybody here.
They did what they needed to do, and the shareholders didn’t get wiped out.”
The rally in AMC’s stock also had a significant impact on its bonds, with its notes experiencing substantial gains in high-yield trading.
AMC’s 10% bond due 2026 surged as much as 11.25 cents on the dollar to 87 cents, reflecting investor optimism fueled by the stock’s resurgence.
While the recent surge in GameStop and AMC stocks echoes the frenzy of 2021, trading volumes and activity still fall short of the peak reached during the meme-stock craze of that period.
Despite this, GameStop ranked as the second-most traded stock by retail investors for out-of-the-money call option volumes on Monday, signaling sustained interest in the meme-stock universe.
As retail traders continue to drive momentum in GameStop and AMC, market observers remain vigilant, watching closely for further developments in this evolving saga of retail-driven stock market dynamics.
