GameStop stock has experienced a massive surge of nearly 60% as the meme-stock Market makes a strong comeback. This surge comes as a result of renewed interest and speculation from retail investors, signaling a resurgence in the volatile trading behavior that first gained popularity earlier this year. Investors are keeping a close eye on these developments as the Market continues to show signs of volatility and unpredictability.
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GameStop stock (GME) surged nearly 60% on Tuesday, continuing a trend sparked by meme-driven excitement that saw shares of the video game retailer climb 74% the day before.
The upward momentum in GameStop was mirrored by a rise in AMC stock, with shares of the theater chain operator jumping around 30% after reaching as high as 120% earlier in the day.
In a recent SEC filing, AMC revealed that it issued approximately 72.5 million new shares in the previous session, generating about $250 million for the company.
Other heavily shorted stocks that experienced rallies on Tuesday included SunPower, with a 63% increase; Beyond Meat, up 25%; and the Children’s Place, which saw a roughly 6% uptick.
GameStop shares had a surge of 110% in the previous session following the resurgence of Keith Gill, also known as “Roaring Kitty,” whose positive outlook on GameStop kickstarted the meme stock craze in 2021.
Short interest in GameStop has remained elevated since the initial meme rally, with S3 Partners data indicating nearly 24% of the float.
GameStop shorts faced losses totaling $1.36 billion on Tuesday after shedding nearly $900 million the day before.
The meme frenzy that captivated audiences three years ago saw a huge influx of retail traders during pandemic lockdowns.
Matt Kohrs, a YouTuber who previously held positions in GameStop and AMC, noted that the core element of “the little guy versus the big guy” remains prevalent in today’s rally, symbolizing a populist movement against perceived elite advantages.
While the current Market activity echoes the 2021 short squeezes, some observers question whether a similar transformational moment is at hand.
Follow Ines Ferre, a senior business reporter for Yahoo Finance, on Twitter @ines_ferre for updates and insights.
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1. Why is GameStop stock gaining nearly 60%?
– GameStop stock is experiencing a surge in value due to renewed interest in meme-stocks in the Market.
2. What are meme-stocks?
– Meme-stocks are stocks that gain popularity on social media platforms like Reddit, often driving up their share prices.
3. Is it a good time to invest in GameStop?
– Investing in GameStop can be risky due to its volatile nature as a meme-stock. It is important to do thorough research before making any investment decisions.
4. How long will GameStop stock gains last?
– It is difficult to predict how long the stock gains will last as meme-stocks can be highly unpredictable. It is best to monitor the Market closely for any sudden changes.
5. Should I buy GameStop stock now?
– Whether to buy GameStop stock now or wait for a potential dip in price is a personal decision based on your own risk tolerance and investment goals. Consulting with a financial advisor may be helpful in making an informed decision.
Win Up To 93% Of Your Trades With The World’s #1 Most Profitable Trading Indicators
Win Up To 93% Of Your Trades With The World’s #1 Most Profitable Trading Indicators
