- GME stock and other meme stocks like AMC rallied sharply, with GameStop short sellers losing nearly $1 billion on Monday’s surge
- AMC Entertainment raised $250 million by selling 72.5 million shares, while Citi raised its price target on AMC stock
- Keith Gill, known as “Roaring Kitty,” returned to social media for the first time in three years, sparking a frenzy in meme stock trading
GameStop, AMC Entertainment and other meme stocks rallied strongly on Monday and Tuesday, extending big gains as Keith Gill, known as Roaring Kitty, returned to social media for the first time in years.
AMC Raises $250 Million in Equity Offering
AMC Entertainment announced on Monday that it raised $250 million through an equity offering, selling 72.5 million shares at an average price of $3.45 per share. Elsewhere, Citi lifted its price target on AMC stock to $3.20 from $3.10, noting that AMC’s preliminary Q1 results were in-line. However, Citi still believes AMC remains overvalued at current levels.
Short Sellers Lose $838 Million on GameStop
According to data firm S3 Partners, short sellers of GameStop stock suffered $838 million in losses during Monday’s huge rally. Analysts at S3 expect more short covering to come on GameStop. Prior to Monday’s surge, GME had a “100/100 squeeze score”, indicating a high risk of a short squeeze relative to peers.
Roaring Kitty Returns After 3 Years Away
On Sunday night, Keith Gill posted on social media for the first time since June 2021. Gill became famous in 2020-2021 for being a key driver of the GameStop short squeeze. His return ignited excitement among retail investors.
Looking Back at the 2021 Short Squeeze
In 2021, GameStop shares surged 688% as individual investors coordinated buying to squeeze out short sellers betting against the stock. GameStop fell sharply in prior years, allowing shorts to build up overly bearish positions. This set up the epic short squeeze in 2021 that was chronicled in the movie “Dumb Money”.
More Meme Stock Action
Along with GameStop and AMC, other meme stocks like Koss, BlackBerry, Virgin Galactic and Beyond Meat made big moves on Monday and Tuesday. The renewed meme stock frenzy comes amid a resurgence in cryptocurrencies and speculative trading.
