SELINSGROVE, PENNSYLVANIA, UNITED STATES – 2021/01/27: A woman walks past the GameStop store inside the Susquehanna Valley Mall. An online group sent share prices of GameStop (GME) and AMC Entertainment Holdings Inc. (AMC) soaring in an attempt to squeeze short sellers.
Photo by Paul Weaver/SOPA Images/LightRocket via Getty Images
GameStop and AMC are seeing big buying from mom-and-pop investors, but the purchases pale in comparison to the meme stock explosion seen three years ago.
The video game seller and movie theater chain saw more than $15.8 million and $37.5 million, respectively, in net retail trader inflows on Monday, data from Vanda Research shows. But that’s dwarfed by peak daily inflows of about $87.5 million for GameStop and $170 million for AMC seen in late January 2021.
The pair saw monster gains of more than 70% each on Monday following a series of cryptic posts on X from “Roaring Kitty,” who’s known for helping create the epic meme stock squeeze that took Wall Street by storm three years ago. These marked the first posts on either X or Reddit from the user, whose legal name is Keith Gill, since 2021.
But expectations of a broader resurgence of the meme stock craze got hit with cold water Tuesday, as the pair saw more muted — though still sizable — rallies. AMC and GameStop, along with other names associated with 2021’s blitz including BlackBerry and Koss, were well off session highs in Tuesday afternoon trading.
Still, GameStop and AMC on Tuesday were up by more than 55% and 40%, respectively, as of 2:15 p.m. ET. Both have soared more than 150% week to date.
GameStop and AMC this week
These rallies have happened despite concerns from investing professionals that these stocks are advancing without material catalysts. This resurgence of activity around this group of equities has already caused trouble for the investors shorting them.
