Shares of video game retailer GameStop and theater chain AMC fell late in the week as the meme stock campaign sparked by the return of “Roaring Kitty” fizzled out.
GameStop stock rose as high as $64.83 before falling 30% to close at $27.67, while AMC stock fell 15.3%, the people reported. report According to Reuters.
“Three years ago, the short sellers were completely surprised by the size of the large purchases and were ultimately blown away by the size of the short sales,” said Rick Meckler, a partner at Cherry Lane Investments. .
“They probably learned from that experience and reduced their exposure, thereby reducing the likelihood of long-term upward pressure,” Meckler added.
As reported by Breitbart News, GameStop shares are being sold by Roaring Kitty, a YouTube channel that spearheaded a 2021 day-trader campaign against institutional investors that bet on GameStop’s demise and led to the rise of the meme. ” shares soared more than 70% on Monday following comments from Keith Gill, the man behind the company. He posted about the stock on his X/Twitter account Sunday night for the first time since June 2021.
On Sunday night, Gill posted a photo of a man slouched in a gaming chair without providing additional context. This is a popular meme that suggests gamers are re-engaging or refocusing on a subject.
— Roaring Kitty (@TheRoaringKitty) May 13, 2024
Since then, both GameStop and AMC stock prices have fallen significantly.
Vanda Research, which tracks individual investor trends, reportedly notes that institutional investors were also involved in the meme stock hype, but that did not happen in 2021.
This week, short sellers who bet on the stock’s fall incurred unrealized losses worth $1.14 billion, according to analysis firm Ortex Technologies. Meanwhile, hedge fund Renaissance Technologies expected GameStop shares to rise further.
Overall, GameStop stock is down more than 70% from its 2021 high, and AMC is down 99% from its all-time high, Reuters noted.
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