Tuesday, GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC) once again attracted attention as their stock prices jumped 147% and 121%, respectively, in pre-market trading.
This marks a revival of the meme stock phenomenon that initially took the market by storm in early 2021, spearheaded by Wallstreetbets on Reddit.
Market response: According to CNBC, financial analysts view this resurgence as a speculative wave fueled by retail investors coordinating through online platforms, highlighting the unpredictability and potential risk factors associated with these actions.
Investor enthusiasm: Both GameStop and AMC have become emblematic of the meme stock movement, where social media and forums like Reddit play a central role in influencing stock prices.
This trend has reintroduced volatility into the market, particularly affecting the stocks of companies like these.
Economic impact: The resurgence of these meme stocks not only affects individual investors but also has broader implications for the market. Strong fluctuations in stock prices could influence market stability and investor confidence in the short term.
Taking advantage of this rise, AMC Entertainment raised around $250 million on Monday by selling shares. It sold 72.5 million shares at $3.45 apiece.
While the stock offering was announced on March 28, the company executed it on Monday.
Related titles: Recent activities have also impacted stocks and related ETFs. Notable movements were observed in BlackBerry Ltd. And Koss Company (NASDAQ: KOSS)as well as significant transaction volumes in the SPDR S&P Retail ETF (NYSE:XRT) and the SPDR Select Consumer Discretionary Sector Fund (NYSE: XLY).
Price action: GME shares were trading up 145% at $74.63 and AMC shares were up 116% at $11.25 premarket at last check Tuesday.
Read now: Ex-Cruise CEO raises $150M for robotics startup co-founded with longtime Tesla AI head who just resigned
Disclaimer: This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
“ACTIVE INVESTORS’ SECRET WEAPON” Boost your stock game with the #1 “news and everything else” trading tool: Benzinga Pro – Click here to start your 14-day trial now!
Get the latest stock analysis from Benzinga?
This article GameStop Stock Soars Over 100% Premarket: Is the 2021 Meme Stock Rally Back? originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
yahoo
