GameStop shares are skyrocketing for a second day, adding to the 74% rally on Monday fueled by the unexpected social media return of retail investor "Roaring Kitty" after a three-year hiatus.
Other meme stocks, such as AMC, also saw big gains.
Roaring Kitty, also known as Keith Gill, marked his return with a Sunday post on X of a drawing of two gamers – one appears to be leaning in, noted by a red arrow. This sparked a buying frenzy in the stocks favored by Reddit users and other retail investors despite no concrete news, and also the ones that are heavily shorted or those that investors are betting against.
GAMESTOP SHARES SOAR AFTER 'ROARING KITTY' POSTS ON X
"It wasn't just GME rallying yesterday; it was a lot of the most heavily shorted stocks in the market," Bespoke Investment Group wrote in a note to clients. "This type of action with no basis in fundamentals is simply not worth chasing as you're bound to get burned eventually. Be very careful out there!"
In the hours following, Roaring Kitty posted more veiled posts using clips from "Ferris Bueller's Day Off," the poignant "No Fighting" scene delivered by Cillian Murphy from "Peaky Blinders" and "Tombstone" starring Kurt Russell.
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Since the beginning of May, short sellers, or those betting GameStop shares will fall, have lost $2.53 billion, according to data compiled by Ortex. More than $1.28 billion was racked up Monday.
FOX Business' inquires to GameStop were not immediately returned.
