GameStop, AMC extend gains but broader meme stock rally fizzles

GameStop, AMC extend gains but broader meme stock rally fizzles

US News

A GameStop store operates in a strip mall in Chicago on March 16, 2023.

Scott Olson | Getty Images

GameStop and AMC shares logged further gains on Wednesday as the broader meme stock trading frenzy showed signs of fizzling early on its third day, with Blackberry shares flat and Koss edging lower.

Brick-and-mortar video game retailer GameStop was up 6.2% at 07:08 a.m. E.T., while movie theatre chain AMC rose 3.8%.

Other so-called “meme stocks” were mixed in early market trading. Shares of one-time popular smartphone maker BlackBerry moved 0.58% lower and headphones manufacturer Koss fell 6.83% at 07:08 a.m. E.T.

The meme stock craze resurged on Monday, seemingly reignited by a rare social media update from “Roaring Kitty.” The man, whose legal name is Keith Gill, posted a picture on the X social media platform of a video gamer sitting forward on their chair — a meme used by gamers to indicate they are taking the game seriously.

Gill, also known as DeepF——Value on Reddit, is a former marketer for Massachusetts Mutual Life Insurance, who previously led a host of day traders piling into GameStop back in 2021.

The return of the meme stock phenomenon brought GameStop and AMC shares up over 70% on Monday, with the stock extending gains into Tuesday. Enthusiasm appeared to be fading by the close of the previous session.

Speaking on CNBC’s “Street Signs Europe” on Tuesday, Smead Capital Management CEO Cole Smead described the meme stock craze as “frankly stupid.”

“It is gambling,” he said.

— CNBC’s Yun Li contributed to this report. 

Read original source here.

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