GME and AMC shares soar after Roaring Kitty tweet

On Thursday, shares of GameStop Corp (NYSE:GME ). and AMC Entertainment (NYSE:AMC ) Holdings Inc. experienced a significant surge, attributed to a tweet by influential online figure Roaring Kitty. GameStop's stock rose by 10%, while AMC Entertainment saw a 12% increase. The tweet in question featured an altered cover of Time magazine from December 25, 2006, with the word "you" removed, leaving a blank computer screen with the word "time" above it.

The market's reaction was swift, with GameStop shares momentarily triggering a volatility halt after spiking as much as 14%. AMC Entertainment's stock also soared, with gains reaching up to 13%. This sudden movement in the stocks is reminiscent of the meme-stock frenzy of January 2021, when both companies were at the center of a retail trading boom.

Keith Gill, known as Roaring Kitty, gained notoriety during the 2021 meme stock phenomenon. His tweet, lacking any explanatory text, led to speculative trading, causing shares of other companies with tickers symbolically related to the post, such as Unity Software Inc . (NYSE: NYSE:U ) and Clear Secure Inc. (NYSE: YOU), to react as well.

The enigmatic tweet has also resulted in a flurry of options trading activity. Unity Software (ETR:SOWGn ) saw a spike in bullish call options, with the volume reaching its highest since September 24. The one-month call skew for Unity more than doubled from the previous day. In the case of Clear Secure, a trader executed a complex options strategy that contributed to record levels of call volume and open interest on the stock.

This latest rally in meme stocks comes at a time when signs of exuberance are evident in the U.S. financial markets. Bitcoin 's value recently surpassed $100,000, and stocks continue to hit new records while credit spreads remain narrow. Roaring Kitty's influence on the market, demonstrated by his sporadic yet impactful posts, continues to play a role in the trading dynamics of certain stocks.

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Source: Investing.com