The GameStop trade remains frothy and risky, as retail investors flock back to meme stocks

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Gamestop News

Keith Gill,Gamestop Stock,Retail Trading

Retail-investor favorite Keith Gill is back, and so is the meme frenzy. But Wall Street pros caution investors to think twice before buying.

And that was enough to ignite the retail trading army. Share price more than doubled in pre-market action before giving back some of those early gains. The stock added about $6 billion in market cap shortly after Monday’s opening bell, before trading was briefly halted due to volatility.

“The options position … is a relatively short term contract, so it needs to have momentum in order to be in the money, which is undoubtedly a reason why someone would want to inject more momentum,” Gellert added. Monday’s gains followed a short-lived 179% two-day run-up in the stock last month, sparked by Gill’s return to social media for the first time since 2021.Despite the renewed hype and excitement surrounding the video-game maker in recent weeks, analysts are quick to reiterate GameStop's massive moves remain disconnected from fundamentals.

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