On March 23, 2021, the GameStop store on Sixth Avenue in New York City.
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shares game station and aviation medical center Shares rose on Tuesday, with the stock looking to extend its gains after “Roaring Kitty” was released online for the first time in about three years.
Shares of video game retailer GameStop rose 50.8%, and shares of movie theater chain AMC rose 21%.
Other so-called “meme stocksThey are also expected to open sharply higher on Tuesday.
The market move follows a sharp rise in stocks early in the trading week. GameStop surged 74.4% on Monday, while AMC surged 78.4% in the previous session.
Recent social media seems to have reignited the meme stock phenomenon renew From “The Roaring Kitten”. The man, whose legal name is Keith Gill, posted a photo of a video gamer sitting on a chair on the X platform, a meme used by gamers to show they are taking gaming seriously.
This is Jill’s first post on the platform since 2021 and has been viewed more than 23 million times. Gill has since posted a series of short video posts from popular TV shows and movies, although the meaning behind some of the videos is unclear.
This scenario “undoubtedly” echoes the 2021 saga
Jill is a former marketer for Massachusetts Mutual Life Insurance Company. Also known as DeepF——Value on Reddit, he led an army of day traders who cheered each other on to buy massive amounts of physical video game stocks and GameStop call options in 2020-2021.
The aim is to drive up the share prices of certain previously unpopular companies, putting pressure on hedge funds that have been betting the companies’ value will fall.
GameStop shares hit an all-time intraday high of $120.75 in January 2021, but the stock subsequently plummeted along with other meme stocks as interest faded. GameStop shares have been trending lower in recent years, hitting a three-year low of $9.95 last month. Monday’s closing price was $30.45.
Analyst firm Ortex Technologies estimated losses to GameStop short sellers at $868 million as of Monday’s close, compared with $1.26 billion in May.
Ortex Technologies said GameStop short sellers lost another $1.04 billion at a price of $46 a share earlier Tuesday, bringing May’s total losses to just over $2.3 billion.
“GameStop’s short interest is nearly free at 25% floatA spokesperson for Ortex Technologies told CNBC via email: “With prices reaching their highest levels since 2022 and a 150% price increase in less than two days, this situation is undoubtedly similar to the events of January 2021. echo.
“It’s worth noting that there are no signs that short position holders have begun to close their positions. In such a dynamic market environment, it is critical to monitor the level of short interest, as these indicators indicate when short sellers have begun to close their positions, which may Adding additional buying pressure.
Short selling is a strategy in which investors borrow shares at a certain price with the expectation that the market value will fall below that level by the time the borrowed shares are repaid.
—CNBC’s Ganesh Rao, Yun Li and Fred Imbert contributed to this report.
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