GameStop and AMC Stocks Surge After Roaring Kitty's Tweet

On Thursday, shares of GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC) experienced significant increases, spurred by a tweet from influential online personality Roaring Kitty. GameStop's stock rose by 10%, while AMC Entertainment saw a 12% increase. The tweet featured an edited cover of Time magazine from December 25, 2006, with the word "you" omitted, leaving a blank screen with the word "time" above it.

The market reacted quickly, with GameStop shares triggering a volatility halt after spiking as high as 14%. AMC Entertainment's stock also surged, with gains reaching 13%. This volatility resembles the meme-stock frenzy of January 2021, when both companies were at the center of a retail trading boom.

Keith Gill, known as Roaring Kitty, gained recognition during the 2021 meme stock phenomenon. His tweet, which did not contain explanatory text, sparked speculative trading in shares of other companies with symbolic ticker connections, such as Unity Software Inc (NYSE:U) and Clear Secure Inc (NYSE:YOU).

The tweet also incited a surge in options trading activity. Unity Software observed a spike in bullish call options, reaching its highest volume since September 24. The one-month call skew for Unity more than doubled compared to the previous day. For Clear Secure, a trader implemented a complex options strategy that contributed to record call volume and open interest.

This recent rally in meme stocks occurs amid signs of exuberance in U.S. financial markets, with Bitcoin's value recently exceeding $100,000 and stock prices hitting new records while credit spreads remain narrow. Roaring Kitty's influence on the market, illustrated by his sporadic yet significant posts, continues to shape the trading dynamics of specific stocks.

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