GameStop Corp (NYSE: GME) and AMC Entertainment Holdings (NYSE: AMC) continued their upward trajectory in pre-market trading on Wednesday, sustaining the latest surge in meme stock activity.
GameStop rose 14.2% to US$55.65, following increases of 74.4% on Monday and 60.1% on Tuesday. Simultaneously, AMC’s stock price increased by 12.4% to US$7.70, after gains of 78% and 32% in the preceding days.
Roaring Kitty, the catalyst for the renewed rally, maintained the momentum by posting video clips on X throughout Tuesday, further fueling the frenzy.
“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 movie, The Town.
Echoing the 2021 phenomenon, retail investors once again targeted a variety of stocks that hedge funds were betting against through short positions. Among these were BlackBerry Ltd and Beyond Meat Inc (NASDAQ:BYND), both of which saw an uptick in pre-market trading on Wednesday.
Analysts, however, urged caution about these increases driven by social media buzz, with Hargreaves Lansdown’s Susannah Streeter pointing out the absence of corporate developments to justify the rises.
“This trend is fueled more by entertainment than by the underlying fundamentals of the companies involved, so investors thinking about joining in should be very careful,” she advised. “Stocks that soar based purely on speculation often plummet just as quickly.”
