The meme stock mania has reared its head again and some of the favorites are back in play. At the end of the week, many of those meme stocks like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) had suffered from a bout of selling pressure.
However, this morning, the retail traders seem to have taken back control of the stocks. The meme stock phenomena have been the highlight of the year so far in the markets as many heavily shorted stocks soared due to concerted efforts from retail investors. The heavy buying usually leads to short sellers buying back their shares and thereby sending the stocks even higher.
AMC and GameStop are two of the more popular meme stocks at this point. This morning the theatre operator saw its stock soar by 16% and while the gains are substantial, it should be noted that the AMC stock has not hit the psychologically vital mark of $60 a share. That said, one should remember that the AMC stock has soared by 467% since the early days of May.
Whole AMC has continued on its merry ways this morning, the same has happened in case of GameStop as well. The stock, which is one of the most famous targets of the Reddit community WallStreetBets, has managed to clock gains of 11% so far this morning.
The GameStop stock has had one of the most remarkable runs in the market in 2021 and has managed to deliver gains of 1400% this year so far. The company currently commands a market cap of $19.4 billion.
In this regard, it is perhaps also necessary to point out that many of the investors who latched on to GameStop have also managed to show remarkable resilience and stuck with the stock through difficult times as well. Experts now believe that in this fresh rally in meme stocks like GameStop many of these investors might end up recording more gains. It might be interest to track these stocks this week.
Clover Health Investments Corp (NASDAQ:CLOV) is another buzzer among the forum traders as the stock soared a whopping 82% to $21.75. The stock made a new high today as well.