Shares of GameStop (GME.N) and AMC (AMC.N) soared nearly 40% in premarket trading on Tuesday, poised to continue their gains from the previous day following a series of posts from “Roaring Kitty,” evoking the meme stocks trading frenzy.
On Monday, GameStop and AMC were the top traded stocks among retail investors, according to J.P. Morgan data. “Roaring Kitty,” the online persona of Keith Gill, who was instrumental in the Reddit rally of January 2021 with his bullish GameStop predictions, returned to social media platform X (formerly Twitter) after nearly three years.
Since Sunday, Gill has posted a meme and over 10 movie clips, including scenes from “X-Men Origins: Wolverine,” “The Avengers,” and the 1993 Western “Tombstone.” Though these cryptic posts didn’t mention any companies, they fueled speculation within the retail trading community about his possible return to action.
GameStop surged up to 118% on Monday, closing at a two-year high and boosting its market cap by nearly $4 billion to $9.32 billion. AMC also jumped 78% to $5.19, more than doubling from its record low in mid-April.
The excitement extended to micro-cap companies favored by short sellers. On Tuesday, U.S.-listed shares of BlackBerry and Tupperware (TUP.N) rose 27% and 3.8%, respectively. According to Ortex data, these companies have approximately 8.4% and 23.5% of their free float in short positions.
