AMC See Double-Digit Rallies As Investors Tout Stocks On Social Media GameStop

GameStop, AMC See Double-Digit Rallies As Investors Tout Stocks On Social Media

May 26, 2021 at 03:27AM

GameStop shot up 16 percent in the stock market to $209.43 Tuesday (May 25), Bloomberg reported.

That marked the highest value since March 17, and the rise was spurred by investors promoting the stocks on social media platforms like Twitter, Stocktwits and trader chatroom WallStreetBets, according to Bloomberg. There were over 14 million GameStop shares traded, which was over triple what had been seen for months.

AMC also benefited from the influx in trading. The stock for the movie theater company jumped 20 percent, a roughly four-month high, Bloomberg reported. There were over 200 million AMC shares traded Tuesday. That made it the second-most traded stock with a value above $1.

There are 37 meme stocks Bloomberg has been tracking, and the group spiked 5.4 percent, making a break in the 50-day rolling average for the first time in months.

The top performer among the stocks Tuesday was Koss, though, which saw a 23 percent rally up to $20.78, according to Bloomberg.

Meanwhile, Naked Brand Group rose 7 percent, while other favorites such as Express and Sundial Growers both rose by over 5 percent, Bloomberg reported.

With Tuesday’s rally, there have been four days in a row of gains for this group, which has been a departure for the broader market’s performance, according to Bloomberg. Most big S&P 500 groups have not been doing so well due to a lackluster performance by some U.S. home sales, with high prices cutting down on demand.

Meme stocks were all the rage earlier this year, with GameStop in particular being rallied by retail traders to a price of $336 a share. The windfall came amid a frenzy of smaller investors trying to mess with big institutional hedge funds, which had been short on GameStop. There was a particular focus on the endeavor from the aforementioned Reddit forum WallStreetBets, which helped take the stock from $17 a share at the beginning of January to upwards of $330 by the end of the January.