Shares of GameStop (GME.N) jumped 16.3% on Tuesday, reaching their highest level since late March. In addition, other so-called “meme” stocks also soared this week as investors shifted back into the retail favorites.
GameStop shares reached $209.43 while other retailers like AMC Entertainment Holdings (AMC.N) and Koss Corp. (KOSS.O) jumped by 20% and 22.9% respectively.
Individual investors on Reddit flocked back to retail favorites after Bitcoin and other cryptocurrencies plummeted. Bitcoin is down about 35% so far this month and rival cryptocurrency ether is about 42% below its record. This comes amid scrutiny of cryptocurrencies from regulators in the U.S. and China.
Reddit and Twitter users encouraged investors to hold on to their investments after they speculated that the recent hike in GameStop and AMC may force investors to get rid of their investments, an event known as a short squeeze.
References:
1) Carew, S. (2021, May 25). GameStop jumps more than 16% as 'meme' stocks roar higher. Reuters. https://www.reuters.com/technology/gamestop-jumps-more-than-16-meme-stocks-roar-higher-2021-05-25/.
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