GameStop Nearly Doubles, AMC Soars 30% Premarket: What's Setting Meme Stocks On Fire Again?

Shares of GameStop Corp. GME and AMC Entertainment Holdings, Inc. AMC, which had cooled off after a hot rally in mid-May, are surging higher in premarket trading on Monday.

The resumption of the meme rally came on the back of Keith Gill, also known as “Roaring Kitty,” disclosing a substantial position in GameStop on the r/Superstonk Reddit forum. A screenshot shared by Gill on the platform showed he held 5 million GME shares valued at $115.70 million, and 120,000 call options worth $65.70 million, with a strike price of $20 and exercisable on June 21. The calls were purchased at $5.48 per share.

A social media user also shared the final trading update posted by Roaring Kitty before he went on a social media hiatus back in April 2021. The trading update, posted on the r/Wallstreetbets Reddit thread, showed Gill owning 200,000 shares valued at $30.94 million at that time.

Late Sunday, Gill also posted a cryptic picture of a reverse card from the game “Uno” on X.

Analysts and data experts have said the meme stock rally this time could be different. Vanda Research indicated that “meme 2.0” may not be a repeat of 2021, given relatively less retail participation and better-prepared hedge funds, which were heavily affected three years ago.

In premarket trading, GameStop soared 89.20% to $43.78, according to Benzinga Pro data. Fellow “meme stock” AMC climbed 30.02% to $5.63.

See Also: Best Meme Stocks

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