Meme Stocks Surge as GameStop Short Squeeze Resurfaces

Meme stocks are on a surging trend once again, with GME, AMC, KOSS, and BlackBerry all experiencing significant gains premarket. Short sellers faced massive losses of nearly $1 billion on GameStop stock during Monday’s surge.

AMC Entertainment announced early Tuesday that it successfully raised $250 million in equity capital after selling 72.5 million shares at an average price of $3.45 per share. Additionally, Citi raised its price target on AMC stock, albeit still considering AMC overvalued at current levels.

GameStop short sellers endured $838 million in losses during Monday’s rally. Analysts anticipate further short covering on GME moving forward as the stock exhibited a high squeeze score.

Keith Gill, known as Roaring Kitty, returned to social media for the first time in three years, sparking a renewed surge in GameStop and AMC stocks. Gill played a pivotal role in the meme stock rally in 2020 and 2021.

Shares of GameStop soared amid buying sprees fueled by online message boards and caught short sellers off guard. The short squeeze saga led to significant gains for GME stock, despite initial expectations of a decline.

GME stock surged 98% early Tuesday, with AMC stock also jumping 121% at the open. Other meme stocks like KOSS, BlackBerry, Beyond Meat, Rent The Runway, and SunPower witnessed notable activity in the market.