Meme Stocks Are Surging Again: Here's Why

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The meme stocks that upset the financial world's status quo in 2021 appear to be making a resurgence.

In an unexpected throwback to the 2021 trading frenzy, GameStop and AMC Entertainment shares are experiencing a significant surge this week.The resurgence is linked primarily to renewed activities by Keith Gill, known as 'Roaring Kitty,' on social media platforms, which have historically influenced so-called 'meme stock' movements.

On Tuesday, GameStop shares were up more than 74 percent, marking a return to the spotlight for the video game retailer, while AMC saw an impressive 91.5 percent increase in share price.Both stocks are up more than 200 percent since May 8.Cinema chain AMC, which has struggled since the pandemic, cashed in on the revived meme stock craze, raising $250 million in share sale completed on Monday.

 

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