May 14, 2024 - Business

Meme stocks come roaring back

A line chart that displays the 1-day change in GameStop and AMC shares from 9:30am to 4pm ET on May 13, 2024. GameStop shares rose 74.91%, while AMC shares increased 79.38%.
Data: YCharts; Chart: Axios Visuals

Meme stocks are back — and it turns out the new ones are exactly the same as the old ones.

Why it matters: Keith "Roaring Kitty" Gill, credited with kickstarting the boom in GameStop shares, is a bona fide celebrity, especially in the wake of a film about him that was the second most popular movie on Netflix upon its release.

Driving the news: Gill is back on Twitter, and that has caused the stocks most associated with the meme-stock craze of early 2021 to start spiking again.

Our thought bubble: This isn't a fully-fledged frenzy — yet. GameStop shares closed Monday at $32.90 while AMC closed at $5.22; both are well off the 2021 highs of $120.75 and $640.76, respectively.

  • Short interest in both stocks is much lower than it was in 2021, making it much more difficult to cause short squeezes like the ones that helped drive the stocks "to the moon" in 2021.

The bottom line: Monday's AMC price action shows, if nothing else, that the short-term momentum trade isn't dead.

  • If a stock's been rising for the past five minutes, it's more likely than not to continue rising for the next five minutes.
  • This is not investment advice.
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