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Both GameStop and AMC were the most traded stocks by retail
investors on Monday, according to data from J.P.Morgan.
"Roaring Kitty", the social media persona of Keith Gill,
credited with setting off the so-called Reddit rally in January
2021 with his bullish calls on GameStop, posted on social media
platform X, formerly Twitter, after nearly three years.
Since Sunday, Gill has shared a meme and more than 10 clips from
movies including "X-Men Origins: Wolverine", "The Avengers" and
the 1993 Western "Tombstone".
The series of cryptic posts did not mention any company names
but sparked speculation in the retail trading community that he
might get back in action.
GameStop surged as much as 118% on Monday and closed at a
two-year high, with its market cap surging nearly $4 billion to
$9.32 billion.
AMC also surged 78% to $5.19. The world's largest theater chain
more than doubled from a record low it hit in mid-April.
The euphoria also spread to micro-cap firms popular among short
sellers, traders who hope to make money by betting on a stock's
fall.
On Tuesday, U.S.-listed shares of BlackBerry and iconic food
storage container company Tupperware rose 27% and 3.8%,
respectively. The two companies have about 8.4% and 23.5%,
respectively, of their free float in short position, according
to Ortex data.
Shares of Reddit rose 2.9%. The social media firm was used by
retail investors in 2021 to coordinate and target highly shorted
stocks, in turn hurting bearish hedge funds in what culminated
into a battle between Wall Street and Main Street.
Retail investor-focused brokerage Robinhood, which made
zero-commission trades mainstream, edged 0.9% higher.
(Reporting by Medha Singh in Bengaluru; Editing by Krishna
Chandra Eluri)
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