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Meme Stock Mania Fades for GameStop and AMC

The resurgence of meme stock frenzy surrounding GameStop (GME) and AMC appears to be losing momentum as both stocks have experienced significant downturns. GameStop’s shares plunged to $31.91, marking an 18% drop, before making a slight recovery to $33.38, still down 16% from its previous close. AMC shares also opened the market 8% lower than their closing price on Wednesday.

The term “meme stock” is derived from the influence of social media on the stock prices of companies like GME and AMC. This trend was notably driven by stock influencer Keith Gill, known as Roaring Kitty on Twitter and YouTube, and as DeepFuckingValue on Reddit. His actions were pivotal during the GameStop short squeeze in 2021. After three years of silence, Gill seems to have made a tentative return to social media, which included posting an edited clip from the movie “The Shawshank Redemption” that playfully referenced his disappearance from the public eye.

However, the authenticity and impact of Gill’s return are still met with skepticism. This uncertainty has contributed to heightened volatility in GameStop and AMC shares, triggering Nasdaq’s volatility circuit breakers multiple times—32 halts for GME and 26 for AMC in just four days.

Amidst this volatility, some traders and hedge funds have found profitable opportunities. A notable example includes a trader who turned a $908,000 investment in GME options into a $44 million profit. Additionally, Renaissance Technologies capitalized on the situation by acquiring over one million GME shares ahead of this week’s rally.

The wild swings in meme stock trading have also boosted activity on trading platforms. Robinhood, in particular, reported one of its busiest days in the past year, with $5 billion in trades in a single day, dwarfing its daily average of $2.7 billion in March, as stated by CEO Vlad Tenev on Twitter.

The ongoing volatility underscores the significant influence of social media and key personalities in the financial markets, illustrating the unpredictable nature of meme stocks and the broader implications for traders and investors alike.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Bullish Times is a marketing agency committed to providing corporate-grade press coverage and shall not be liable for any loss or damage arising from reliance on this information. Readers should perform their own research and due diligence before engaging in any financial activities.

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