When GameStop Stock Spikes, Here's the 7 Meme Stocks That Follow

June 10, 2024 at 06:59 AM EDT

Meme stocks

The return of internet stock guru Roaring Kitty (Keith Gill) sparked a NYSE: AMC">meme stock resurgence once again led by retail/wholesale sector stock GameStop Co. (NYSE: GME). Roaring Kitty gained fame in 2021, helping spark the short squeeze on GameStop shares that blew out several hedge funds in the process. GameStop peaked in the $400s (pre-split) and started its painful descent along with the meme stocks. Newbies who stuck with shares became the latest in a long line of bagholders. History tends to repeat itself in the markets. Old timers who survived the Internet and day trading bubble of 2000 can attest.

The meme stock mania spawned new terms like "diamond hands" and acronyms like you only live once (YOLO) and hold on for dear life (HODL), meaning to hold your stock through the sell-off forever. It created a new class of investors called “Apes” for bagholders of AMC.

The Return of Roaring Kitty Triggers Meme Stocks Surge, Again

Roaring Kitty has returned, and his presence single-handedly triggered a temporary resurgence in the meme stocks. Shares of GME surged from $19 to as high as $80 in the pre-market session on May 14, 2024, before shares collapsed to $21. They surged again to a high of $67.50 on June 6, heading into Roaring Kitty's scheduled YouTube livestream, which reached a peak live viewing attendance of over 640,000 people. However, the sell-the-new effect clobbered GME shares as they lost 39% to close at $28.22 after Roaring Kitty rambled aimlessly while racking up millions in paper losses that day.

Meme Stocks Are a Losing Game

The pattern with meme stocks is a surge in the pre-market session and then a sell-off during regular market hours. The pre-market session starting at 4:00 am EST is when GME prices get jacked up and the normal 8:00 am EST pre-market session is when the selling spreads.

Move Over Magnificent 7, Make Way for the Meme 8

When GME surges, watch these 7 other meme stocks. Be cautious: frequent GME "gap and craps" dilute reactions from laggard meme stocks. They lack strong fundamentals, leading to high short interest rates.

They resemble the “Sweat Hogs” from the 1970s television show Welcome Back, Kotter.

Here’s the list of 7 tag-a-long meme stocks to GME:

AMC Entertainment Holdings Inc. (NYSE: AMC) is the world’s largest movie theater operator that can’t seem to make a profit, ever.

Koss Co. (NASDAQ: KOSS), not to be confused with warehouse club Costco Wholesale Co. (NASDAQ: COST). This Koss Co. sells headphones and related accessories.

BlackBerry Ltd. (NYSE: BB) once dominated the smartphone market with their physical keyboard-infused phones, which went the way of Blockbuster Video as keyboards moved on-screen, spawning the Apple Inc. (NASDAQ: AAPL) iPhone revolution.

Beyond Meat Inc. (NASDAQ: BYND) makes plant-based faux meats for non-carnivore consumers.

Tupperware Brands Co. (NYSE: TUP) makes household and kitchen consumer products including their iconic plastic containers that have probably outlasted your grandparents.

MicroCloud Hologram Inc. (NASDAQ: HOLO) makes light detection and range (LIDAR) and 3D holographic products and components based in China.

Big Lots Inc. (NYSE: BIG) is a home discount retailer and a big disappointment in its fiscal Q1 2025 earnings, reporting a loss of $4.51, missing consensus estimates by 59 cents, as revenues sunk 10.2% YoY.

Whack-a-Mole Action on the Meme 8 Stocks

The correlation with GME stock and the rest of the meme stocks is evidenced by comparing the price action on the candlestick charts. When GME initially gapped to $64.83 on May 14, 2024, meme stocks also followed the gap and the crap back down. The thick horizontal purple line on the charts indicates the gap peak. As GME gaps and sells off again, the meme stocks also follow right into the toilet. It reminds me of when my mom would ask me, "If (popular) Timmy jumped off a cliff, would you jump too?" For the Meme 8, the answer is definitely YES.

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When GameStop Stock Spikes, Here's the 7 Meme Stocks That Follow

The Return of Roaring Kitty Triggers Meme Stocks Surge, Again

Meme Stocks Are a Losing Game

Move Over Magnificent 7, Make Way for the Meme 8

Whack-a-Mole Action on the Meme 8 Stocks

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