Shares of GameStop soared 16.3per cent on Tuesday after hitting their highest level since late March, and other so-called"meme" stocks also rallied as investors shifted back into the retail favorites that had notched big gains earlier in the year.
The video game retailer’s shares finished at US$209.43, marking their first close above US$200 since March 19. Shares of AMC Entertainment Holdings ended up about 20per cent while Koss Corp gained 22.9per cent."Once it goes over US$200 the buzz starts," said Dennis Dick, head of markets structure and proprietary trader at Bright Trading LLC. You can “100per cent peg it to social media.
GameStop closed 46.5per cent above its lowest close so far for May, while Bitcoin is down about 35per cent so far this month and rival cryptocurrency ether is about 42per cent below its record, reached on May 12 in a sell-off that has come amid increasing scrutiny from regulators in the United States and China.
Some 129 million shares of AMC Entertainment, or 28.8per cent of its float, were on loan on May 24, Astec data showed.