Roaring Kitty Returns: GameStop Stock ($GME) Surges Over 40% in Pre-Market Trading

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GameStop’s meteoric rise continues as “Roaring Kitty” makes a comeback on X, sending GME surging over 40% in pre-market trading. With a market cap nearing $10 billion and a staggering $4.5 billion added in just three weeks, GME is on the verge of joining the ranks of the 500 largest US public companies. The resurgence extends to other meme stocks, with AMC Entertainment (AMC) also up 10% in pre-market trading. The return of meme stocks signals a revival of speculative fervour in the market.

BREAKING: Gamestop stock, $GME, surges over 40% in pre-market trading as "Roaring Kitty" returns to X.

The stock is now up 140% in just over 3 weeks and approaching $10 BILLION in market cap.

Over the last 3 weeks, Gamestop stock has now added $4.5 BILLION in market cap.$GME… pic.twitter.com/USxziCdZLj
— The Kobeissi Letter (@KobeissiLetter) May 13, 2024

GameStop (GME) and AMC Entertainment Holdings (AMC) Stocks Soar

Gill’s single post on X had a deep impact, particularly on stocks closely linked with him. GameStop (GME) stock surged by an astonishing 44% in pre-market trading, echoing the infamous short squeeze of January 2021 that saw GME skyrocket to unprecedented heights.

Despite this, GameStop recently reported its best earnings per share performance in three years for its fiscal fourth quarter. However, Chairman and CEO Ryan Cohen chose not to hold a conference call to discuss these results.

Moreover, Cohen’s RC Ventures holds a 12% stake in the company, and analysts anticipate a modest operating margin of just over 2% for the fiscal year amid a 4% sales decline. While GameStop wants to reinvent itself and become a major gaming and entertainment retailer, Walmart, Target, and Best Buy remain the tough competitors.

Similarly, AMC Entertainment Holdings (AMC) experienced a significant uptick, with its stock jumping by as much as 12%.

Meme Coins Ride the Wave

An unaffiliated GameStop meme coin launched on the Solana blockchain saw a whopping rise of over 550%. This shows that meme coins are becoming more and more popular in the crypto community. Also, the price of an AMC token went up by an amazing 1,200%, which shows that the market wants assets based on memes.

Microcap Cat-Themed Meme Coins Rally

It’s amazing how powerful internet culture can be when microcap tokens like KITTY, which represent the silly fascination with cat images, skyrocketed by thousands of percent. These events show how insanely popular meme coins are among investors and how quickly their value could rise.

Gill’s Influence and Market Dynamics

Keith Gill’s return to the spotlight signifies more than just a resurgence of meme stock mania; it underscores the enduring impact of social media influencers on financial markets. His cult following and bullish sentiment have once again captivated the attention of investors, driving volatility and speculative trading activity across traditional and crypto markets.

Crypto Reaction

Crypto enthusiasts on X, celebrated the news, recognizing it as yet another instance where traditional finance intersects with the decentralized world of digital assets.