GameStop and AMC are seeing significant buying from retail investors, but the amounts pale in comparison to the meme stock explosion seen three years ago. On Monday, GameStop and AMC saw net retail trader inflows of $15.8 million and $37.5 million, respectively. However, these numbers are much lower than the peak daily inflows of $87.5 million for GameStop and $170 million for AMC seen in late January 2021.
The sudden surge in GameStop and AMC stock prices on Monday, with gains of over 70% each, was attributed to cryptic posts on social media from “Roaring Kitty,” also known as Keith Gill. These posts marked the first time Gill had posted on sites like X and Reddit since 2021. However, the excitement surrounding a potential resurgence of the meme stock craze was dampened on Tuesday as the stock prices saw more modest rallies, albeit still significant.
Despite concerns from investing professionals that these stocks are rallying without significant catalysts, GameStop and AMC continued to climb on Tuesday, with gains exceeding 60% and 30%, respectively. Both stocks have soared more than 100% week to date. This renewed interest in meme stocks has caused difficulties for short-sellers who are betting against these companies.
The buying frenzy around GameStop and AMC this week has caught the attention of the market, with many investors closely watching these stocks for any signs of continued growth or possible pullback. The enthusiasm from retail investors has fueled the stock price movements, leading to significant volatility in these names. Many investors are keeping a close eye on developments in the meme stock arena to see how the situation evolves in the coming days.
As GameStop and AMC continue to experience heightened volatility and significant price swings, the broader market is closely monitoring these developments for any potential ripple effects. Retail investors have played a key role in driving up these stocks, potentially creating challenges for traditional investors and short-sellers. The unprecedented trading activity around meme stocks like GameStop and AMC is a reminder of the power of retail investors in influencing market dynamics and the importance of staying informed and adaptable in a rapidly changing market environment.
