RoaringKitty Returns: Can Meme Stocks Stage a Comeback?

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Gamestop Corp News

AMC Entertainment Holdings Inc,Bitcoin US Dollar

Stocks Analysis by MarketBeat.com (Gabriel Osorio-Mazzilli) covering: GameStop Corp, AMC Entertainment Holdings Inc, Bitcoin US Dollar. Read MarketBeat.com (Gabriel Osorio-Mazzilli)'s latest article on Investing.com

A historical event in financial markets took place in 2021. It was so big that even books and movies were made about it to explain the nature of the markets when there is a psychological alignment behind a single trend. Some may call bubbles blowing up and bursting; others call the herd mentality inherent in the stock market. Whichever way investors look at it, the same 2021 boom and bust might repeat itself shortly.

Here is where the rinse-and-repeat strategy comes in. Every few quarters or so, these companies run out of cash. Then RoaringKitty makes content that beginner investors see as professional advice. The stocks rally to stratospheric valuations, management dilutes the stock, and prices come back down to start the cycle all over again.

Over 60,000 call options contracts were opened for the $125 a share strike expiring in January 2025. This means that some investors are betting that GameStop stock could reach a high of $125 or more in a little over a month from today. With a boost of up to 12.1% in holdings recently, these institutional players now have up to $36.6 million invested in AMC stock, which is also in the vicinity of State Street’s position of $33.5 million with another boost of 14.6% during the same period as Geode’s allocation.

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