GameStop (NYSE: GME) and AMC (NYSE: AMC) which have turned out to be retail investor favorites witnessed their 2nd days of decline. This comes after a massive surge was recorded due to initial excitement over the social media return of “Roaring Kitty.” He has been a central figure in the 2021 meme stock rally.
GameStop drops
As per the data, GameStop shares dropped 22% to $30.55, after soaring as high as $64.83 earlier in the week. The same happened with AMC as it fell by 10%, erasing gains from an 88% surge since Friday’s close.
If you don’t know, Keith Gill is known as Roaring Kitty on social media who had reignited interest in these stocks just by a series of posts on his X account. However, the enthusiasm among traders had quickly waned.
This recent surge is unlike the 2021 rally driven largely by retail investors coordinating on Reddit. The ongoing movement involves institutional investors, notes Vanda Research.
GameStop share price is still up by 69% in the last 5 trading days. GME is trading at an average price of $30.37, at the press time.
Crypto slides
A fresh surge rally was also recorded in the meme crypto category after the mega jump made by GameStop. Its Solana based meme token, GameStop (GME), price also took a hit. The crypto dropped more than 42% in the last 24 hours. However, it is still up by 1236% in the last year.
The meme crypto GME is trading at an average price of $0.0061, at the press time. Its 24 hour trading volume is down by 25% to stand at $140 million
Despite recent fluctuations, GameStop’s stock remains nearly 70% below its 2021 peak, while AMC is 98% off its all-time high, having hit a record low last month. Keith Gill’s posts have led to over 50 movie clips being shared, stirring speculation. However, he has not disclosed the intentions behind these posts or whether he plans to make his investments public again.
Former US SEC Chair Jay Clayton commented on CNBC that Gill’s posts have triggered “a wave of euphoric and speculative buying,” which he cautioned is not ideal for market stability.
