GameStop and other meme stocks fall after 3-day surge
Meme stocks are fizzling out after making massive gains on the return of "Roaring Kitty," who was largely responsible for the 2021 short squeeze of GameStop (GME). Yahoo Finance's Jared Blikre joins Catalysts to break down the latest movement and how it compares to the meme stock craze three years ago.
GameStop is down around 25%, and AMC (AMC) is down about 22% on the third day after "Roaring Kitty's" return.
Bilkre explains that there's a "marked difference" in today's meme stocks compared to 2021 when there was more retail participation.
"I don't think we're gonna have these reprisals the way we did in 2021. And I think the magnitude is probably going to be a little more muted this time around," he adds.
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Melanie Riehl
Video transcript
Turning now to means do the rally fizzling out, at least for now and then this move lower.
Coming on the heels of what has been a massive gain in some of these stocks over the last two trading days.
Let's get over to our colleague, Jared has a closer look at this movement that we're seeing.
Jared.
If it's two steps forward, one step back today is the back and you can't see it necessarily on this board real well until I sort by performance here, how much red have on the screen.
And in fact, a lot of those bigger names to the left uh are simply not participating in the meme trade anymore.
But I've been, I've been focusing on gamestop and A MC and cost and some of the other OG members here.
And you can actually see these at the bottom of our list.
Here's Gamestop down uh 25% cost 25% and A MC down 22%.
But what I was writing about in the morning brief today is there's a market difference from what's happening today.
From 2021 when we saw a lot more retail participation back then, uh Wall Street was caught flat footed.
They did not expect that, but as happens in human nature, they've adapted.
And so now we're seeing this is just, uh, really limited to some, uh, to a handful of tickers.
Let me show you the three day total because you can see once we account for the two days, it's a much different picture game stop up over 100 5% A MC, up 83%.
But I should note that a lot of these gains have been fleeting.
And that's something that's really, that does seem similar to the original uh movement that we had last year.
Now, let me just show you the two day po uh total here.
I'm gonna show you some breaks in the action.
We've had a lot of um uh volatility halts.
And in fact, I 16 yesterday, we've already had four today.
So that's something that stayed with us kind of interrupt the action.
And I see these comment coming across the terminal.
I see these being posted on X and the question is, how much like this are we going to repeat from 2021?
I don't think we're going to have these reprisals the way we did in 2021.
And I think the magnitude probably going to be a little bit more muted this time around