People enter a GameStop store in Alhambra, California
FREDERIC J. BROWN/AFP/Getty Images
GameStop and AMC Entertainment Holdings saw their shares prices shoot up Tuesday, leading a resurgence for meme stocks.
There was no material news events driving the stock moves. That has been the case for months for GameStop and AMC, whose share prices often are influenced by nonfundamental factors like short seller activity, options volume, social media interest, and momentum trading.
GameStop (ticker: GME) surged 28% to $210.29 on Tuesday, while AMC stock (AMC) was up 20% to $44.26. Clover Health Investments (CLOV) and BlackBerry (BB), both stocks popular among Reddit’s WallStreetBets crowd, popped more than 9% each.
For GameStop stock, Tuesday marked its highest close since June 30 and its highest trading volume since June 11. It was GameStop stock’s largest percent increase since it rose nearly 53% on March 25. AMC marked its highest close since July 9, its highest trading volume since June 18, and its largest percent increase since it rose 24% on July 20.
Meme stocks cooled down in July and August after a resurgence in May and June. As has been the case since January, what comes next is anyone’s guess. But if meme stocks are back, that could be good news for the volatile shares of Robinhood Markets (HOOD). The online broker has benefited from frenzied trading in meme stocks in the past. Shares were up 9% to $49.38 on Tuesday.
Write to Connor Smith at [email protected]
