Proactive Investors - GameStop Corp (NYSE:GME) and AMC Entertainment Holdings (NYSE:AMC) were up yet again in pre-market trading on Wednesday, as the latest meme stock frenzy showed no sign of stopping.
Following a 74.4% rise on Monday and a 60.1% jump on Tuesday, GameStop climbed 14.2% to US$55.65 before the markets opened on Wednesday.
AMC was up 12.4% at US$7.70 in the meantime, having climbed 78% and 32% on Monday and Tuesday respectively.
Roaring Kitty, who had sparked the latest rally through a return to X earlier in the week, continued to stoke up the craze with video clips on the social media site through Tuesday.
The latest, a snippet from the film ‘Braveheart’ sporting Mel Gibson’s famous “freedom” line, over which Roaring Kitty had captioned the name “GameStop”.
pic.twitter.com/qSUSX5MxeG— Roaring Kitty (@TheRoaringKitty) May 15, 2024
Another featured the line: “I need your help. I can't tell you what it is, you can never ask me about it later, and we're gonna hurt some people” from The Town.
pic.twitter.com/pFQoinsrZt— Roaring Kitty (@TheRoaringKitty) May 14, 2024
In a similar fashion to the 2021 craze, retail traders had targeted a range of stocks being betted against by the likes of hedge funds through short positions.
This included BlackBerry (TSX:BB) Ltd and Beyond Meat Inc (NASDAQ:BYND), both of which nudged up in pre-market trading on Wednesday.
Analysts reiterated caution toward the social media-fuelled increases, with Hargreaves Lansdown’s Susannah Streeter highlighting the lack of corporate to support these.
“This is a trend driven by entertainment rather than company fundamentals, and so any investors considering hitching a ride should exercise extreme caution,” she noted.
“Stocks which rocket up on pure speculation tend to drop back down to earth very quickly.”
pic.twitter.com/03iJsSZobH— Roaring Kitty (@TheRoaringKitty) May 14, 2024