Meme stocks like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) have extended their gains, with their Frankfurt-listed shares experiencing a significant surge on Wednesday, continuing the rally observed earlier in the week.
On Tuesday, AMC, a cinema chain, witnessed a 32% increase on Wall Street, while GameStop, a video game retailer, saw a remarkable surge of 60%.
This surge follows a series of enigmatic posts made on the social media platform X on Sunday by “Roaring Kitty” Keith Gill, a key figure in the 2021 meme stock frenzy, after a three-year hiatus. These posts featured clips from movies such as Pirates of the Caribbean, Tombstone, and V For Vendetta, along with a comic strip depicting a man sitting upright in a chair.
Notably, renowned investor Bill Gross commented on the sharp rise in the companies favored by many retail investors on the platform, humorously remarking, “‘Gamestonk’ is passe. What could be a better buy signal than a cartoon man sitting upright in his chair?”
In contrast, Cole Smead, CEO of Smead Capital Management, which manages approximately $6 billion in assets, criticized the buying frenzy, labeling it as “frankly stupid” and akin to gambling, in an interview with CNBC on Tuesday.
